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.