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June 6, 2022

Texas company completes acquisition of South Portland semiconductor plant

gray, industrial plant with ON sign, viewed from across a street File Photo / William Hall Diodes Inc., of Plano, Texas, completed its acquisition of onsemi's semiconductor plant in South Portland, shown here.

Diodes Inc. (Nasdaq: DIOD), has completed the acquisition of a South Portland semiconductor plant, the Plano, Texas-based buyer announced Friday. 

As announced in February, Diodes bought the 371,000-square-foot wafer-fabrication facility and operations from onsemi (Nasdaq: ON), of Phoenix, for an undisclosed amount. 

Gurmeet Dhaliwal, a spokesperson for Diodes told Mainebiz that the company employs around 9,000 people worldwide, including 500 in the United States. Dhaliwal also said that there are no changes planned to the existing South Portland management team or their responsibilities.

The acquisition comes a little more than a year after onsemi laid off around 740 employees out of 34,000 worldwide as part of a streamlining effort; at the time, a company representative told Mainebiz the reductions in South Portland were "minor."

As part of a multiyear wafer supply agreement, Diodes will continue to manufacture onsemi’s products from South Portland as onsemi completes the transfer of the production to other facilities.

“We are pleased to successfully complete this transaction, which aligns with our strategic objective for significant revenue and gross profit dollar growth over the next several years,” said Keh-Shew Lu, chairman, president and CEO of Diodes.

He added that the South Portland plant's engineering capabilities and skills will support Diodes' technical and operational performance expectations. In addition, the plant adds capacity for analog products to accelerate his company's growth in the automotive and industrial end markets. 

"This U.S.-based facility, together with our existing facilities in Asia and Europe, further enhances our global manufacturing footprint and greatly increases Diodes’ internal capacity and competitive advantage in this supply constrained environment, while also supporting our future long-term growth," he said. "With the transaction now closed, we aim to aggressively ramp new wafer fab processes and capabilities at [onsemi] in alignment with Diodes’s strategic growth plan.”

Diodes plans to use the facility to qualify and manufacture CMOS and BiCMOS processes to support multiple analog product lines including power management ICs, signal chain and standard products as well as several high-performance discrete product lines.

Based on Friday's closing share price on Nasdaq, Diodes has a market capitalization of around $3.4 billion. At $75.76, the stock is trading 0.55% lower than a year ago. Onsemi shares have an equity value of around $27.35 billion, and are up nearly 66% in value over the past year.

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