WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) has announced that ON Semiconductor Corporation will sell its Ignition IGBT business after allegations its proposed $2.4 billion acquisition of Fairchild Semiconductor International Inc. would be anticompetitive.
The FTC alleged the merged company would hold more than 60 percent of the global market for Insulated-Gate Bipolar Transistors (IGBTs). The divestiture will allow for competition to remain in the marketplace. The FTC stated that without the divestiture, the substantially lessened competition could result in higher prices and reduced innovation.
Ignition IGBTs are semiconductors used in automotive internal combustion engines. ON and Fairchild are the two main competitors for the product. The proposed consent order that preserves competition will force ON to divest its Ignition IGBT business to Littelfuse Inc., a Chicago-based manufacturer. All design files and intellectual property needed to manufacture the Ignition IGBTs must be included in the deal.
The FTC voted 3-0 to issue the complaint and accept the proposed consent order, which will go before public comment for 30 days. After that time, the FTC will determine whether to finalize the order.