ON Semi buys Sanyo Semi -

Sanyo Semiconductor - a subsidiary of Sanyo Electric - is being snapped up by ON Semiconductor for $366 million or so.

The deal will be done by the end of this year, said ON.

Why has ON snapped up Sanyo Semi? It gives ON access to Asian and Japanese customers, the two companies have complementary products and customers, and ON can give Sanyo Semi customers access to front end mixed signal and analogue manufacturing as well as high volume back end facilities. Said ON.

CEO of ON, Keith Jackson, said that merging the two companies will give it access to both automotive and consumer markets. It will also allow ON to penetrate the Japanese market - Sanyo Semi, he said, has a 50 year operating history in the home market.

As well as these benefits, Jackson said that that ON's products will be boosted by the ability to make and sell microcontrollers and custom ASICs.

Teruo Tabata, president of Sanyo, said strategy will remain unchanged, with both companies specialising in analogue technology.

The agreement between ON and Sanyo Electric gives the latter party around $238 million of ON shares. Sanyo Semi revenues are around $1.2 billion.