ON Semiconductor has agreed to sell its ignition IGBT power device business to Littelfuse for $104 million to allow its acquisition of Fairchild Semiconductor to go ahead.

ON Semiconductor on Wednesday said it extended its tender offer for Fairchild Semiconductor International until Jan. 20 but didn't raise its offer of $20 a share, which remains below a competing bid.

A group led by China Resources Holdings' semiconductor arm and Hua Capital Management has made an offer for Fairchild Semiconductor. That bid followed a November agreement with ON Semiconductor to buy Fairchild for $2.4 billion.

Infineon Technologies, Germany's largest chipmaker, is the front-runner to acquire Fairchild Semiconductor International because it's willing to pay more for the company, people with knowledge of the matter said.

Share on Facebook Share on Twitter STMicroelectronics is considering a bid for Fairchild Semiconductor International as Europe's largest chipmaker seeks to boost growth and shore up its digital products business, according to people familiar with the matter.

Fairchild has announced management changes that streamline the company's reporting structure.

Fairchild Semiconductor will be closing the 6-inch manufacturing line in its South Portland, Maine manufacturing facility and transferring production to its 8-inch fab in the same site. The restructuring is expected to eliminate approximately 120 jobs at the facility over a nine-month period.

China-based Sichuan Changhong Electric has committed to fulfilling purchasing target plans for Fairchild's power and mobile components through December 2015. Fairchild's devices are designed into a broad range of Changhong products including LED TVs, PDP TVs, LCD TVs, CRT TVs, set-top boxes, refrigerators and air conditioners.

Infineon Technologies and Fairchild Semiconductor have announced an agreement to create compatibility between their power MOSFET packages. Specifically the agreement covers the Infineon PowerStage 3x3 and Fairchild MLP 3x3 packages.

The lawsuit, initiated by Infineon in November 2008, focus on 14 patents related to super-junction power transistors along with trench power MOSFETs and IGBT power transistors.

"We believe this delay in fab closures is due to stronger than expected demand, and Fairchild wanting to continue manufacturing product at those facilities to meet this stronger than expected demand...

Fairchild Semiconductor International recently announced it will close a wafer fabrication plant and eliminate some manufacturing at a second site to save up to US$25 million annually, as part of the power-chip maker's ongoing cost-reduction in response to slumping demand.

Fairchild Semiconductor said Friday it is cutting 12% of its workforce, or 1,100 people, in an attempt to reduce expenses.

Infineon said on Saturday that Fairchild Semiconductor's patent lawsuit against the German chip maker had been filed in response to a similar case brought by Infineon against its US rival. The two companies are in a legal tussle over so called power chips that regulate electricity supply in computers, sold by Infineon under its CoolMOS and OptiMOS as well as Infineon IGBT and CanPak brands.