SAN JOSE, Calif. – Hooray for On Semiconductor Inc. Looking to keep jobs in the U.S., On Semiconductor plans to install another $15.7 million worth of production equipment in its 200-mm Pocatello, Ida.-based wafer manufacturing facility during the next six months.
This investment is in addition to the company's announcement in June of an $11 million equipment expansion. Most chip makers are investing in fabs offshore or turning to the foundries in Asia.
“This second capital investment (in Pocatello) further secures current jobs at the Pocatello facility, will lead to additional hiring, and is an indicator of On Semiconductor’s commitment to its operations here in Pocatello,” said John Spicer, On Semiconductor's Pocatello site manager. "I want to thank Idaho Governor Butch Otter, the Bannock County Board of Commissioners and the City of Pocatello for working with us in support of this expansion.”
On Semiconductor currently employs approximately 635 people at its Pocatello facility. The local Pocatello campus houses On Semiconductor’s Fab 10, a 200-mm wafer production facility specializing in the manufacture of application specific integrated circuits and other products.
On Semi (Phoenix) reported record third quarter sales of $600.7 million, up 3 percent sequentially and up 27 percent year-to-year. The company reported a net income for the quarter of $87.8 million, up 10 percent from the previous quarter and up 190 percent compared with the year-ago quarter.
The company's sales came in ahead of consensus analyst expectations, which called for On Semi to report sales of $599.4 million, according to Yahoo Finance.
On a mix-adjusted basis, Om Semi's average selling prices (ASPs) in the third were generally flat when compared to the second quarter, the company said.
For the fourth quarter, On semi said it expects fourth quarter sales to decline to between $565 million and $585 million. The company expects ASPs to be roughly flat with third quarter ASPs.
On Semi's stock value declined in after-hours trading because of the guidance for the current quarter, which come in below analyst predictions of about $593 million, according to Yahoo Finance.