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ON Semiconductor to Purchase Cypress’ CMOS Image Sensor Business Unit

Supplier of integrated circuit equipment and semiconductors, ON Semiconductor has entered into a definitive agreement with Cypress Semiconductor to acquire Cypress’ CMOS Image Sensor Business Unit (ISBU) in an all cash deal for about $31.4 million. The deal is anticipated to be completed by the end of Q1 of 2011.

Cypress’ wide range of CMOS image sensors are utilized in numerous applications such as machine vision, multi-MP cinematography and digital photography, two-dimensional and linear bar code imaging, biometrics, medical x-ray imaging and aerospace solutions. STAR, IBIS, VITA and LUBA portfolios are some of the recognized products of the company.

ON Semiconductor will integrate the ISBU into its Digital, Military/Aerospace and Image Sensor (DMI) division. As per the agreement, ON Semiconductor is anticipated to acquire about 100 patents and patent applications associated solely to the CMOS image sensor business and secure relevant intellectual property licenses from Cypress Semiconductor to aid in business growth. Nearly 80 workers of ISBU will be added to the ON Semiconductor’s enrollment.

ON Semiconductor currently produces one-dimensional image sensing products such as ambient/proximity sensors and contact image sensing. After the acquisition is completed, the company will have a comprehensive image sensing products covering one-dimensional and two-dimensional sensors for a wide range of applications.

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