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ON Semiconductor to Explore Sale of Manufacturing Facility in Belgium  Chinese Japanese

Company to explore mutually beneficial arrangement that promotes orderly transition

PHOENIX, Ariz. – Feb. 3, 2020 –ON Semiconductor (Nasdaq: ON)driving energy efficient innovations, today announced it is exploring a sale of its manufacturing facility in Oudenaarde, Belgium. The company will begin searching for strategic partners that are willing to enter into a mutually beneficial arrangement that the company expects will facilitate an orderly transition of products from its Oudenaarde facility to other facilities within the ON Semiconductor network.

The Oudenaarde facility is an automotive qualified facility which meets the IATF 16949: 2016 global industry standard for quality management. The company believes that the facility is an attractive semiconductor manufacturing asset for a number of reasons, including its highly skilled workforce with extensive experience managing a diverse array of technologies and its close proximity to the world’s leading automotive innovation and manufacturing hub. Currently, the 44.000 m 2 facility supports the company’s low, medium and high voltage analog CMOS and BCD technologies.

As part of its effort to promote an orderly transition for all parties involved, the company also plans to enter into a supply agreement under mutually agreeable terms.

オン・セミコンダクターについて
オン・セミコンダクター(Nasdaq: ON)は、お客様にグローバルな省エネルギーを実現していただけるよう、高効率エネルギーへのイノベーションをリードしてまいります。オン・セミコンダクターは半導体をベースにしたソリューションのリーディング・サプライヤーで、エネルギー効率の高い、電力管理、アナログ、センサ、ロジック、タイミング、コネクティビティ、ディスクリート、SoCおよびカスタム・デバイスの包括的なポートフォリオを提供しています。オン・セミコンダクターの製品は、自動車、通信、コンピューティング、民生機器、産業用機器、医療機器、航空宇宙、防衛のアプリケーションにおける特有な設計上の課題を解決します。オン・セミコンダクターは、迅速な対応、信頼性、世界クラスのサプライ・チェーンと品質保証プログラム、厳格な企業倫理とコンプライアンスを備え、北米、ヨーロッパ、およびアジア太平洋地域の主要市場で、製造工場、営業所、デザイン・センターのネットワークを運営しています。詳細については、https://www.onsemi.jpをご覧ください。

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オン・セミコンダクターおよびオン・セミコンダクターのロゴは、Semiconductor Components Industries, LLCの登録商標です。本ドキュメントに記載されている、それ以外のブランド名および製品名はすべて、各所有者の登録商標または商標です。オン・セミコンダクターは、本ニュースリリースで同社Webサイトを参照していますが、Webサイト上の情報はここには記載されていません。

This document contains “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of ON Semiconductor, including financial guidance for the year ending December 31, 2020. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” or “anticipates,” or by discussions of strategy, plans, or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates, and assumptions and involve risks, uncertainties, and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Among these factors are our revenue and operating performance; economic conditions and markets (including current financial conditions); risk related to changes in tariffs or other government trade policies, including between the U.S. and China; risks related to our ability to meet our assumptions regarding outlook for revenue and gross margin as a percentage of revenue; effects of exchange rate fluctuations; the cyclical nature of the semiconductor industry; changes in demand for our products; changes in inventories at our customers and distributors; risks associated with restructuring actions and workforce reductions; technological and product development risks; risks that our products may be accused of infringing the IP rights of others; enforcement and protection of our intellectual property rights and related risks; risks related to the security of our information systems and secured network; availability of raw materials, electricity, gas, water, and other supply chain uncertainties; our ability to effectively shift production to other facilities when required in order to maintain supply continuity for our customers; variable demand and the aggressive pricing environment for semiconductor products; our ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality for our current products; risks associated with our acquisitions and dispositions generally, including our ability to realize the anticipated benefits of our acquisitions and dispositions; including our acquisition of Quantenna Communications, Inc.; risks that acquisitions or dispositions may disrupt our current plans and operations, the risk of unexpected costs, charges, or expenses resulting from acquisitions or dispositions and difficulties arising from integrating and consolidating acquired businesses, our timely filing of financial information with the Securities and Exchange Commission (“SEC”) for acquired businesses, and our ability to accurately predict the future financial performance of acquired businesses); competitor actions, including the adverse impact of competitor product announcements; pricing and gross profit pressures; risks associated with the addition of Huawei Technologies Co., Ltd. and its non-U.S. affiliates and subsidiaries, and other customers, to the U.S. Department of Commerce, Bureau of Industry Security Entity List; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields; control of costs and expenses and realization of cost savings and synergies from restructurings; the costs to defend against or pursue litigation and the potential significant costs associated with adverse litigation outcomes; risks associated with decisions to expend cash reserves for various uses in accordance with our capital allocation policy such as debt prepayment, stock repurchases, or acquisitions rather than to retain such cash for future needs; risks associated with our substantial leverage and restrictive covenants in our debt agreements that may be in place from time to time; risks associated with our worldwide operations, including changes in trade policies, foreign employment and labor matters associated with unions and collective bargaining arrangements, continuing political unrest in markets in which we do significant business, including Hong Kong, as well as man-made and/or natural disasters affecting our operations or financial results; the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally; risks of changes in U.S. or international tax rates or legislation; risks related to the potential impact of climate change and regulations related thereto on our operations; risks and costs associated with increased and new regulation of corporate governance and disclosure standards; risks related to new legal requirements; and risks and expenses involving environmental or other governmental regulation. Additional factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in our 2018 Annual Report on Form 10-K filed with the SEC on February 20, 2019 (our "2018 Form 10-K"), Part II, Item IA "Risk Factors" in our Form 10-Q for the quarter ended March 29, 2019 (our "First Quarter 10-Q"), our Form 10-Q for the quarter ended June 28, 2019 (our "Second Quarter 10-Q"), and our Form 10-Q for the quarter ended September 27, 2019 (our "Third Quarter 10-Q"), and from time-to-time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, except as may be required by law.

You should carefully consider the trends, risks, and uncertainties described in this document, our 2018 Form 10-K, our First Quarter 10-Q, our Second Quarter 10-Q, our Third Quarter 10-Q, and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties actually occurs or continues, our business, financial condition, or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

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