South Portland, Maine–Fairchild Semiconductor International has signed a deal to acquire Intersil Corp.’s discrete power business for $338 million, a move that will make the company one of the world’s largest MOSFET suppliers. The combination of Fairchild’s existing power MOSFET business and Intersil’s discrete power products is estimated to give Fairchild an overall share of approximately 20% of the market.

“With this acquisition, we will have quadrupled our discrete business in less than 4 years, with a run rate of roughly $1 billion a year,” says Fairchild President, Chairman, and CEO Kirk Pond. “The Intersil discrete power business is profitable, generating more than $200 million in sales per year. We believe Fairchild can grow this business at or above market rates, while increasing gross margins to levels consistent with our other power businesses. This acquisition enables us to increase market share quickly, strengthens our positions in high growth markets, and gains new capabilities in manufacturing and design. We are especially excited about the expansion of our IGBT business and our increased presence in the automotive segment. Our strategy of growth through sound acquisitions and new product development continues to serve us well through all phases of the semiconductor industry cycles.”

The acquisition provides Fairchild with advanced design, engineering, and manufacturing operations, based in Mountaintop, PA, that include the industry’s only 8-in. fab dedicated to discrete power products.