The move reflects the considerable consolidation in the semiconductor market over the last few years.
Fairchild is one of the earliest semiconductor companies, and its line of business is more or less completely different from ON. CEO Keith Jackson said the merger will deliver a company generating revenue of around $5 billion a year. He said the overlap will amount to less than $100 million.
This year has seen Avago buy Broadcom, and Intel buy Altera. The Chinese Tsinghua company, backed by the government, has made several attempts to buy its way into the global semiconductor industry, but has been hampered by rules imposed by the US and Chinese governments.