ON Semi shutting down Japanese facility, launches retirement program

|About: ON Semiconductor Corporation (ON)|By:, SA News Editor

ON Semi (ONNN), which has lost share to analog chip peers in recent quarters, is shutting down a Hanyu, Japan chip assembly/testing facility within its Sanyo Semi unit (acquired in 2010). 210 employees (170 full-time workers and 40 contract workers) will be laid off as part of the move. (8-K)

ON expects to record cash charges of $11M-$16M, and achieve cost savings of $4M/quarter within a year of the facility's closure.

The chipmaker is also launching a voluntary retirement program for Sanyo Semi employees it expects will lower headcount by 600-700 workers. ON expects the program will result in cash charges of $40M-$48M, and costs savings of $36M-$45M in the first year following its completion.

ON currently has ~20K employees worldwide.