March 28, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Fairchild division on its own> Semiconductor sold unit for $550 million

SOUTH PORTLAND — National Semiconductor Corp. completed the spinoff of its Fairchild division Tuesday, resurrecting one of the industry’s historic names as an independent company based in Maine.

Under the previously announced deal, Fairchild was sold for $550 million to a group of investors led by its new management. National Semiconductor, based in Santa Clara, Calif., will retain a minority stake and work in cooperation with the new company for “a substantial transition period.”

The new Fairchild Semiconductor starts out as a $700 million company with 6,400 employees worldwide, including 1,050 in South Portland. Fairchild also has operations in Santa Clara, Salt Lake City, Malaysia and the Philippines.

National retains 12,300 employees, including a growing work force of several hundred at a facility being developed at South Portland, next to the Fairchild complex.

The spinoff was designed to free National of its lower-margin, memory- and logic-chip operations and enable it to focus on its more profitable primary business, making mixed-signal chips, which convert analog and digital signals.

“This sale enables each company to concentrate on its core competencies to maximize their businesses, which operate with very different strategies and success models,” said Brian L. Halla, National chairman and CEO.

The sale was completed more than two months ahead of the target date initially set. “Everything fell together very nicely,” said Fairchild spokeswoman Fran Harrison.

“Today’s transition to independent status unlocks the inherent value of Fairchild,” said Kirk Pond, the former chief operating officer at National who becomes chairman and CEO of the new company.

A well-known name in Silicon Valley, Fairchild Semiconductor was formed in 1958 as part of Fairchild Camera and Instrument. It developed the first computer chip that could be mass-produced.


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