About TSC: ON Semi / Fairchild TVS Acquisition Q&A for Customers

06/26/18

General Information

- The acquisition of this portfolio aligns with our strategy to expand in power semiconductor applications while strengthening our core circuit protection business and increasing our presence in the automotive and industrial electronics market

- Discrete semiconductor devices are a core TSC business, and the acquisition of the TVS Diode product line is an excellent fit, driving synergies in manufacturing and end markets with our current TVS and discrete product offerings.

- While we expect there to be many benefits for both TSC and ON Semiconductor customers in the future, a full integration will take time. In the short term, we anticipate that you will experience little, if any, immediate change in your business interactions. You will continue to work with the same sales and customer service teams you do today, be invoiced in the same manner, and receive the same products. After closing TSC will begin making joint sales calls with your current ON Semi sales contact to help answer any other questions or concerns you may have to make the transition as seamless for you as possible.

 

General Questions

Q:  What is TSC’s background?

A: Taiwan Semiconductor was established in 1979 and remains under the direction of its founder and CEO, Arthur Wang. The company has grown from its beginnings as a local manufacturer, to a global enterprise with 2,000 employees. Taiwan Semiconductor is publicly traded on the Stock Exchange Corporation of Taiwan.

Recognized for more than 39 years for its core competence in discrete Power Rectifiers, Taiwan Semiconductor has expanded its product portfolio to include Trench Schottkys,  MOSFETs, Power Transistors, LED Driver ICs, Analog ICs and ESD Protection Devices, and now provides a complete solution from one source.

Taiwan Semiconductor’s production facilities in China and Taiwan are fully compliant to current automotive and environmental standards such as IATF16949, ISO9001 and ISO14001.  Thirteen worldwide sales offices are located to conveniently serve customers throughout Asia, Europe, and America. For more information, please visit the TSC website: http://www.taiwansemi.com.

Q: What specific assets will TSC acquire from ON Semiconductor?

A. TSC will acquire the TVS Diodes, product line. No employees or manufacturing locations will be included in the transaction.

Q: Why is TSC acquiring this product lines from ON Semiconductor?

A: The ON Semiconductor product line represented an opportunity to grow our worldwide share in TVS Diodes in attractive markets. Furthermore, as the TVS Diode products are already manufactured by TSC there is great synergy with our current portfolio. This acquisition brings us potentially new customer relationships where we can offer our full portfolio of discrete semiconductor devices. Finally, this investment demonstrates we are committed to offer our customers a complete portfolio of discrete semiconductor devices over the long term.

Q: What does this transaction mean for me, as an ON Semiconductor or TSC customer?

A. In the near team, we anticipate that you will experience little, if any, immediate change. When and if changes do occur, we are fully committed to making the transition as seamless for you as possible.

We anticipate this transaction will provide benefits for you over the long term including but not limited to a broader combined offering of TVS diodes and other discrete semiconductor solutions that are complimentary across several key markets.

Q: What do I need to do?

A: Continue to work with your existing contacts. You will be contacted by a TSC representative to discuss any planned changes and have the opportunity to ask any questions about the manufacturing or business operations.

 

Customer Support

Q: Will my sales or customer service contacts change as a result of this transaction?

A. There will be no immediate change as ON Semiconductor will manage order to cash post close including the manufacturing of all products.

Q. Who should customer contact for questions regarding the acquisition or acquired products?

A. Customers should contact their current TSC or ON Semiconductor sales or customer service representative.

Q. Who do I contact for Technical Support for acquired products?

A. Americas: customerservice@tscus.com

     EA: Thomas.Boehm@tsceu.com

     APAC: jsli@mail.ts.com.tw

Q. Will ON Semiconductor salespeople and manufactures reps continue to sell the devices in the acquired portfolio?

A. ON Semiconductor sales people or manufactures reps will not manage any new program activities post close. ON Semiconductor will send all active opportunities to TSC and will be uploaded into TSC Business Center (TSCBC). On Semiconductor will continue to process all orders for the affected products.

Q: How will end customers be notified of the acquisition?

A. Customers will be notified via email by both ON Semiconductor and TSC corporate marketing.

Q. How do we manage escalations from customers on acquired products? e.g. expedites, RMA’s, etc.

A: Work with your TSC Customer Service Representative. TSC CSR will in turn work directly with ON Semiconductor to resolve any customer issues. Any escalation received directly by ON Semiconductor will be communicated to TSC CSRs.

 

Manufacturing

Q: Is there a detailed list of part numbers affected by this change?

A: No part number is affected, a complete list of parts can be found in below datasheets:

1V5KE6V8(C)A - 1V5KE440(C)A

P6KE6V8(C)A - P6KE440(C)A

SMBJ5V0(C)A - SMBJ170(C)A

SMCJ5V0(C)A - SMCJ170(C)A

Q: Will acquired part numbers change?

A: No, part numbers will remain the same. If any changes are made a PCN will be sent by TSC.

Q: What changes will occur in the manufacturing location or process?

A: ON Semiconductor already uses TSC as a qualified manufacturer for these TVS diode products. There are no manufacturing process or site changes planned for the foreseeable future.

Q. Will part marking, invoicing or labeling change from ON Semiconductor to TSC?

A. The part markings will change back to “Fairchild Semiconductor” for a period of approximately two years. TSC will provide formal notification of subsequent changes from the “Fairchild Semiconductor” mark to the TSC mark in compliance with TSCs internal quality system and relevant industry standards.

 

Branding

Q: Is TSC acquiring any logos or trademarks from ON Semiconductor?

A: Yes, TSC will use the “Fairchild Semiconductor” trademarks or logos for a period of up to 30 months.

Q. When will datasheets for the acquired products to be live on http://www.taiwansemi.com?

A. Datasheets will be available on TSC’s website within 30 days of close.

 

Pricing / Quoting

Q: How do customers request a special price quote?

A. For existing ON Semiconductor distributor partners and OEM customers, you will continue to work through your ON Semiconductor contact. TSC salespeople and manufactures reps will submit quotes via TSC Inside Sales Representative.

Q: How do I request a renewal of existing special price quotes?

A: For existing special price quotes, utilize the current ON Semiconductor process for renewal.

Q: Will contract pricing for acquired products be honored by TSC?

A: TSC will honor all existing contract pricing through the contract expiration dates. All future negotiations will be handled directly with TSC. However quote responses will come through ON Semiconductor systems. Legally, ON Semiconductor is not allowed to influence or engage in any pricing decisions regarding the acquired products after close.

 

Orders / Backlog / Invoices

Q: How do customers place orders for the products acquired?

A: Distributors and direct OEM customer should continue to place orders directly with ON Semiconductor or via the same channel they use today until further notice. ON Semiconductor will support all order to cash processes until further notice.

Q: Will existing backlog be delivered by TSC or ON Semiconductor?

A: Existing backlog will be delivered by ON Semiconductor with current packaging and labeling until further notice.

Q. Will my delivery date on my initial orders be honored?

A. Yes all orders will continue to be processed and shipped as previously provided by ON Semiconductor.

Q. What is the process to expedite orders?

A. All expedite requests for existing open orders should be directed to your contact at ON Semiconductor. If this is a NEW customer, please work with your TSC Inside Sales Representative.

Q: Will TSC or ON Semiconductor receive payment on open invoices?

A: Open invoices will be paid to ON Semiconductor through the existing process until further notice.

Q: Will TSC or ON Semiconductor receive payment on future invoices?

A: Future invoices will be paid to ON Semiconductor through the existing process until further notice.

Q: How can I obtain samples?

A: A template can be supplied by your TSC CSR. Once the template is filled out, send to CSR. The CSR will in turn work with ON Semiconductor to supply samples.

 

Distribution

Q: Will the existing backlog move to TSC or will I be required to place NEW manual orders?

A: All open backlog will remain with ON Semiconductor with current packaging and labeling until further notice.

Q: For existing business, who do I submit my ship and debit claims to?

A: All order to cash will be handled by ON Semiconductor until further notice.

Q: Can we place new orders via EDI?

A: Yes, any existing ON Semiconductor customers using EDI should continue to order in the same manner.

Q: What is the process to expedite orders?

A:  All expedite requests for existing customers should be directed to your contact at ON Semiconductor. If this is a NEW customer, please work with your local TSC Representative.

Q: When should POS, payments, EDI transactions, etc. move from ON Semiconductor to TSC?

A: ON Semiconductor will handle all order to cash transaction until TSC integrates this product line into their systems. TSC will send out additional information before this date and work with you to ensure a smooth transition.

Q: Currently distributors have two separate landing pages on their website, one for TSC and another for ON Semiconductor. Going forward, should the distributor combine the landing pages or keep them separate?

A: The landing pages can be kept separate or combined depending on your system capabilities. All acquired ON Semiconductor products, brands and trademarks should be rebranded and renamed TSC. This would apply to all subpages, microsite, webpages, etc.