ON Semiconductor Teams With Melexis To Unlock Potential Of LIN And CAN Technologies For Automotive Power Solutions

Source: Melexis NV
Companies work to increase power management options for next-generation automobiles.

To provide better service to the automotive industry and expand sourcing options for advanced line transceivers, ON Semiconductor (Nasdaq: ONNN) and Melexis (Euronext Brussels: MELE) today announced that they will jointly market advanced devices and are working towards sharing Intellectual Property (IP) for independent product development by both companies.

ON Semiconductor and Melexis will jointly promote Local Interconnect Network (LIN) and Controller Area Network (CAN) transceiver products taking advantage of ON Semiconductor's firmly established distribution channels and extensive customer relationships in the automotive industry. Melexis will continue to market its product line of LIN and CAN transceivers to provide automotive customers with expanded sourcing options for technologies that could define the next generation of electronic power management in the automobile.

The companies plan to expand the relationship where ON Semiconductor could obtain a license for Melexis' LIN and CAN technologies for future development that would enable the expansion of LIN and CAN options in the automotive industry. Melexis would continue its independent product development efforts, ensuring an expanding array of options for the automotive industry.

"By partnering in this effort, ON Semiconductor and Melexis have a tremendous opportunity to participate in the next level of sophistication of power-management electronics in the automobile industry," said Morry Marshall, Vice President Strategic Technologies at Semico, an industry research firm. "As the electronic content inside the automobile continues to increase, automobile manufacturers will need to replace conventional wiring harnesses with multiplexed systems to increase efficiency and decrease wiring harness costs. LIN and CAN technologies will allow automotive manufacturers to continue to provide, at affordable prices, the electronics based entertainment, comfort, convenience and safety features that consumers demand."

This agreement also will enable the companies to provide the auto industry with two production sources to assure the delivery of critical components. The companies plan to have their first joint samples available in the first quarter of this year.

"Our agreement with Melexis enables us to provide our customers in the automotive industry with the service and quality that the manufacturers demand," said Harvey Steele, ON Semiconductor corporate market development director for automotive. "We've worked diligently to establish and expand our presence in the auto industry and working with Melexis provides us with additional momentum to deliver more options and better service to our customers."

"To make this deal work, we needed a company that had the same commitment to customer service and product quality that we have here at Melexis," said Lutz Langelüddecke, Melexis Business Unit Manager Internal Communications. "ON Semiconductor clearly has the reputation and customer focus that we needed and we're excited to provide this new level of service and quality to our customers."