Fairchild completes Intersil power acquisition

Fairchild Semiconductor has completed its acquisition of Intersil's discrete power business for approximately $338 million in cash.

Fairchild Semiconductor has completed its acquisition of Intersil's discrete power business for approximately $338 million in cash.

The acquisition moves Fairchild to a position as the second largest power mosfet supplier in the world, representing a 20% share of this $3 billion market that grew 40% last year.

Fairchild now acquires approximately 550 patents worldwide, greatly expanding its intellectual property portfolio of industry leading power products including UltraFET Trench mosfets, SMPS IGBTs, and Stealth Diodes, all supported by approximately 50 design and development engineers.

Fairchild gains additional sales and marketing strength, including employees dedicated to the US and European automotive markets.

Included in the acquisition is the industry's only 8in wafer fabrication facility dedicated to discrete power products, located in Mountaintop, Pennsylvania, and employing an experienced operations workforce.

"With this acquisition, Fairchild clearly establishes itself as the power franchise.

Intersil's power product solutions combined with our existing low voltage power products and growing analogue power management business creates one of the broadest power product lines in the industry.

We expect our total power business to approach a $1 billion annual sales run rate by the end of this year.

We plan to continue our growth strategy with a focus on providing power solutions through both new product development and additional acquisitions.

Our business model allows us to identify and capture key opportunities to expand our product development and penetrate multiple new end markets", said Kirk Pond, president, CEO and chairman of the board of Fairchild Semiconductor.

"Completing this acquisition during a challenging market cycle demonstrates that we continue to execute our strategy of growing through acquisitions and new product development.

We have an established track record of strengthening our product portfolio through strategic acquisitions in these economic cycles, and we will continue to evaluate opportunities", said Pond.

"Recently the automotive and industrial markets have been more resilient than the computing and communications segments.

Consequently, we expect first quarter sales performance of the business we are acquiring to outperform overall industry trends.

We fully expect this business to contribute strongly to our long term revenue and profit growth, as we position our total power business to resume sales growth when the inevitable market upturn begins".

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