ON to expand
Chip-maker to invest $11M to hike production capacity here
POCATELLO — Pocatello received some long-awaited good news on the jobs front Thursday when ON Semiconductor announced it will add $11 million worth of production equipment to its local manufacturing facility, a move that will greatly increase production capability.
The investment will provide about a 50 percent increase in the capacity of ON’s local eight-inch semiconductor wafer manufacturing facility, said John Spicer, ON’s Pocatello site manager.
“We’ll be able to improve our capacity tremendously,” Spicer said. “I think this speaks volumes about the commitment ON is making to Pocatello.” The capital investment not only will lead to the hiring of an additional 35 employees at ON’s Pocatello plant this year, but company officials said the move further secures current jobs at the plant.
ON employs about 630 people at its Pocatello facility, which produces semiconductors for the automotive, medical, industrial and military and aerospace markets. ON is one of Pocatello’s largest private employers and Bannock County's third-largest property tax payer. In 2009, ON paid $1.33 million in real and personal property tax in Bannock County.
When ON acquired AMI Semiconductor in March 2008, rumors swirled that the company was considering leaving Pocatello. Local leaders hailed Thursday's announcement as proof of ON's commitment to its Pocatello operations.
“The expansion of ON is great news for Pocatello,” said Mayor Brian Blad. “With this expansion, it solidifies the fact that they are going to be here long term.”
“It certainly bodes well for the future staying power of ON Semiconductor in our community,” said Gynii Gilliam,executive director of Bannock Development Corp.
ON plans to begin installing the additional equipment at its Fab 10 manufacturing facility in Pocatello immediately. According to a company news release, ON has weathered the recession and is moving forward to address increased demand and opportunities.
“Expansion in Idaho is part of the company’s overall strategy to maximize its in-house manufacturing capabilities to address increased customer demand,” stated Chuck Spinner, vice president of ON’s eight-inch manufacturing operations in Pocatello. “This is positive news for our employees, for the Pocatello community and for our global customers.”
Spicer said incentives provided by local and state governmental entities played a key role in the company’s decision to invest in and expand its operations in Pocatello.
Taking advantage of a state law, Bannock County provided ON a 5-year, 50 percent reduction on the assessed value of the new equipment.
Through Pocatello, ON was awarded a $200,000 Idaho Department of Commerce grant for electronics infrastructure development.
ON was also awarded a sizable workforce development training grant through the Idaho Department of Labor. The grant is for up to $4,000 per employee and will be integrated into a similar grant provided to the company when it acquired AMI.
ON officials said the governor, departments of labor and commerce, Pocatello, Bannock County and Bannock Development all helped make the expansion a reality.
“That shows the state’s commitment to keeping ON here,” Spicer said. “It shows business and government can work together.”
June 4, 2010
BY SEAN ELLIS
sellis@journalnet.com