ON Semiconductor - Forum for discussion - IPO this week with MSDW the lead underwriter. Spinoff from Motorola
ON SEMICONDUCTOR
Snapshot | The Company | The Offering
Business Description
ON Semiconductor, formerly known as the Semiconductor Components Group of the Semiconductor Products Sector of Motorola is one of the largest independent suppliers of semiconductor components in the world. The company's total addressable market consists of discrete, standard analog and standard logic semiconductors. These devices are commonly referred to as semiconductor components and are the core building blocks that provide the power control, power protection and interfacing necessary for almost all electronic systems. According to World Semiconductor Trade Statistics, the company's total addressable market comprised approximately $19.5 billion of revenues in 1999 and is projected to grow to $25.1 billion in revenues in 2002. The principal end-user markets for SCG Holdings products are networking and computing, wireless communications, consumer electronics, automotive electronics and industrial. The products are used in such high-growth applications as routers and other networking equipment, cable and other high-speed modems, cellular telephones and other portable electronic devices, digital set-top boxes, DVD players, GPS and other navigation tools and industrial automation and control systems. The company's research and development team, which includes approximately 300 people, focuses on the development of new products for use in these and other high-growth applications.
Use Proceeds
The company plans to use the proceeds from the offering to redeem preferred stock and prepay a portion of high-yield notes and a portion of the loans under its senior bank facilities.
Competitors
The semiconductor industry, particularly the market for semiconductor components, is highly competitive. Although only a few companies compete with SGC Holdings in all of our product lines, the company faces significant competition within each of its product lines from major international semiconductor companies as well as smaller companies focused on specific market niches. |
