Filed by: ON Semiconductor Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: AMIS Holdings, Inc.
Commission File No.: 000-50397
This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the benefits of the proposed transaction between ON Semiconductor Corporation (ON) and AMIS Holdings, Inc. (AMIS) and the future financial performance of ON. These forward-looking statements are based on information available to ON and AMIS as of the date of this release and current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond ONs or AMIS control. In particular, such risks and uncertainties include difficulties encountered in integrating merged businesses; the risk that the transaction does not close, including the risk that the requisite stockholder and regulatory approvals may not be obtained; the variable demand and the aggressive pricing environment for semiconductor products; dependence on each companys ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality its current products; the adverse impact of competitive product announcements; revenues and operating performance, changes in overall economic conditions, the cyclical nature of the semiconductor industry, changes in demand for our products, changes in inventories at customers and distributors, technological and product development risks, availability of raw materials, competitors actions, pricing and gross margin pressures, loss of key customers, order cancellations or reduced bookings, changes in manufacturing yields, control of costs and expenses, significant litigation, risks associated with acquisitions and dispositions, risks associated with leverage and restrictive covenants in debt agreements, risks associated with international operations, the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally, risks and costs associated with increased and new regulation of corporate governance and disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act of 2002), and risks involving environmental or other governmental regulation. Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in ONs Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the SEC) on February 23, 2007, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of ONs SEC filings, and AMIS Annual Report on Form 10-K as filed with the SEC on February 28, 2007, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of AMIS SEC filings. These forward-looking statements should not be relied upon as representing ONs or AMIS views as of any subsequent date and neither undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made.
This communication is being made in respect of the proposed transaction involving ON and AMIS. In connection with the proposed transaction, ON plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of ON and AMIS plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of ON and AMIS. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by ON and AMIS through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC from ON by directing a request to ON Semiconductor Corporation, 5005 East McDowell Road, Phoenix, AZ, 85008, Attention: Investor Relations (telephone: (602) 244-3437) or going to ONs corporate website at www.onsemi.com, or from AMIS by directing a request to AMIS Holdings, Inc., 2300 Buckskin Road Pocatello, ID, 83201, Attention: Investor Relations (telephone: (208) 233-4690) or going to AMIS corporate website at www.amis.com.
ON and AMIS, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding ONs directors and executive officers is contained in its annual proxy statement filed with the SEC on April 11, 2007. Information regarding AMIS directors and executive officers is contained in AMIS annual proxy statement filed with the SEC on May 24, 2007. Additional information regarding the interests of such potential participants will be included in the Joint Proxy Statement/Prospectus and the other relevant documents filed with the SEC (when available).
Filed below is a presentation to ON employees on December 13, 2007 regarding ONs proposed acquisition of AMIS.
For Internal Use Only AMI/ON Semiconductor The Power of ON Semiconductor Presentation December 2007 |
2 For Internal Use Only AMI/ON Semiconductor Safe Harbor Statement and Non-GAAP Financial Measure Information During the course of this presentation, ON Semiconductor may make projections or
other forward-looking statements regarding future events or its future
financial performance. The words estimate, intend, expect, plan, or similar expressions are intended to identify forward-looking statements. ON Semiconductor wishes to
caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially. Important factors relating to our business,
including factors that could cause actual results to differ from our
forward-looking statements, are described in our Form 10-K and other
filings with the SEC. ON Semiconductor assumes no obligation to update
forward-looking statements to reflect actual results or changed assumptions or other factors. Some data in this presentation may include non-GAAP financial measures. You
can find reconciliations of certain of these non-GAAP financial measures
to the most directly comparable measures under generally accepted accounting
principles within the following presentation at our website (http://www.onsemi.com) at the Investors section under the category Annual Reports/Financial Releases.
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3 For Internal Use Only AMI/ON Semiconductor This document contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, statements related to the benefits of the proposed transaction between ON Semiconductor Corporation (ON) and AMIS
Holdings, Inc. (AMIS) and the future financial performance of
ON. These forward-looking statements are based on information available to ON and AMIS as of the date of this release and current expectations, forecasts and assumptions and
involve a number of risks and uncertainties that could cause actual results
to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond ONs or AMIS control. In particular, such risks and uncertainties include difficulties encountered in integrating merged businesses; the risk that the transaction does not close, including the risk that the requisite stockholder and
regulatory approvals may not be obtained; the variable demand and the
aggressive pricing environment for semiconductor products; dependence on each companys ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality its current products; the adverse impact of competitive product announcements;
revenues and operating performance, changes in overall economic conditions,
the cyclical nature of the semiconductor industry, changes in demand
for our products, changes in inventories at customers and distributors, technological and product development risks, availability of raw materials, competitors' actions, pricing and gross margin
pressures, loss of key customers, order cancellations or reduced bookings,
changes in manufacturing yields, control of costs and expenses, significant litigation, risks associated with acquisitions and dispositions, risks associated with leverage and restrictive covenants in debt agreements, risks associated with international operations, the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally, risks and costs
associated with increased and new regulation of corporate governance and
disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act of 2002), and risks involving environmental or other governmental regulation.
Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in ONs Annual Report on Form 10-K as filed with the Securities and Exchange
Commission (the SEC) on February 23, 2007, Quarterly Reports on
Form 10-Q Current Reports on Form 8-K and other of ONs SEC filings, and AMIS Annual Report on Form 10-K as filed with the SEC on February 28, 2007, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and other of AMIS SEC filings. These forward-looking statements should not be relied upon as representing ONs or AMIS views as of any subsequent date and neither undertake any obligation to update
forward- looking statements to reflect events or circumstances after the
date they were made. 425 Language |
4 For Internal Use Only AMI/ON Semiconductor This communication is being made in respect of the proposed transaction involving ON
and AMIS. In connection with the proposed transaction, ON plans to file with
the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of ON and AMIS plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/ Prospectus
will be mailed to stockholders of ON and AMIS. INVESTORS AND SECURITY
HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER
DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION. Investors and security holders will be able to obtain free
copies of the Registration Statement and the Joint Proxy
Statement/Prospectus (when available) and other documents filed with the SEC by ON and AMIS through the web site maintained by the SEC at www.sec.gov. In addition, investors and security
holders will be able to obtain free copies of the Registration Statement and
the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC from ON by directing a request to ON Semiconductor Corporation, 5005
East McDowell Road, Phoenix, AZ, 85008, Attention: Investor Relations (telephone: (602) 244-3437) or going to ONs corporate website at www.onsemi.com, or from AMIS by directing a request to AMIS Holdings, Inc., 2300
Buckskin Road Pocatello, ID, 83201, Attention: Investor Relations (telephone: 208-233-4690) or going to AMIS corporate website at www.amis.com. ON and AMIS, and their respective directors and executive officers, may be deemed to be
participants in the solicitation of proxies in respect of the proposed
transaction. Information regarding ONs directors and executive officers is contained in its annual proxy statement filed with the SEC on April 11, 2007. Information regarding AMIS directors and executive officers is contained in AMIS annual proxy statement filed with the SEC on May 24, 2007. Additional information regarding the interests of such potential participants will be included in
the Joint Proxy Statement/Prospectus and the other relevant documents filed with the SEC (when available). |
5 For Internal Use Only AMI/ON Semiconductor A Look at the Transaction About ON Semiconductor What the Deal Means to You Open Q & A Overview |
6 For Internal Use Only AMI/ON Semiconductor Transaction Overview Terms Each share of AMI will be exchanged for 1.150 ON Semiconductor shares Consideration Stock-for-stock transaction valued at approximately $915 million Anticipated Close First half of 2008 Conditions Approval by ON Semiconductor and AMI shareholders, customary closing conditions and regulatory approvals |
7 For Internal Use Only AMI/ON Semiconductor A Winning Combination More Than 90 Years of Semiconductor Expertise World class, high volume, cost effective products Leading standard products in Automotive, Computing, Consumer and Communications end markets Industry leader in power management LTM Revenue: $1,560MM LTM EBITDA: $388MM LTM Free Cash Flow (1) : $223MM Leader in analog and mixed signal technology and design Automotive products leader Leading custom products in Medical, Mil/Aero and Industrial end markets 8-10 years average product lifespan LTM Revenue: $619MM LTM EBITDA: $134MM LTM Free Cash Flow (1) : $25MM (1) Free cash flow defined as operating cash flow less capital
expenditures. Manufacturing synergies Operating expense savings Tax savings Capital expenditure reductions Synergies |
8 For Internal Use Only AMI/ON Semiconductor Transaction Rationale Accelerates ON Semiconductors Analog Transformation Strengthen End Market Presence and Gain Entry into New Markets Expands presence in automotive, consumer, communications and industrial end markets Pro Forma LTM revenues of $2.2 billion* Pro Forma LTM EBITDA of $522 million* (with zero synergies) Gain entry into high growth, higher margin medical market and high- margin Mil/Aero market Increase value proposition to end customers with both leading standard and custom products Successful track record of cost reduction and rationalization to improve profitability of combined business Utilize advanced sub-micron Gresham fabrication facility to drive cost savings and extend product roadmap Leverage ON Semiconductors Operational Excellence to Drive Cost Savings Significant Scale and Cash Flow Generation * Represents combined financials as reported for the last twelve months ending September 2007 for ON Semiconductor and AMI Semiconductor. Free cash flow defined as operating cash flow less capital expenditures. Earnings per share excludes
amortization of intangibles |
9 For Internal Use Only AMI/ON Semiconductor ON Market Segments Automotive and Power Regulation Computing Products Digital and Consumer Products Standard Products AC-DC / DC-DC converters Linear regulators PWM
controllers LDO
VCore Controllers Gate
Drivers DDR Memory Controllers Low / Medium Voltage MOSFETS Filters / Protection Audio
Amps DC-DC converters Analog switches LED drivers ESD
protection ECL Clocks Small signal transistors Standard logic ICs Small signal diodes $427 $349 $174 $500 Revenue: Revenue: Revenue: Revenue: Note: Product Revenues represent last twelve months ending September 2007.
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10 For Internal Use Only AMI/ON Semiconductor AMI Market Segments Automotive Industrial Medical Communications Military and Aerospace Revenue: $169M Revenue: $157M Revenue: $104M Revenue: $48M Revenue: $48M In-Vehicle Sensors Stability Control Engine Management Drive by Wire Headlight Control Factory Automation Industrial Networking Wireless Security Energy Metering Medical Imaging Audiology Implantable Devices Diagnostic Therapy Power over Ethernet Wireless Base Stations Switches & Routers Optical Networking Cockpit Displays Guidance Systems Infrared Imaging Applications: Applications: Applications: Applications: Applications: Note: Revenues represent last twelve months ending September 2007.
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11 For Internal Use Only AMI/ON Semiconductor Bolster Existing End Markets - Automotive Applications Applications Communications Electromagnetic Mirrors and Glass Infotainment Instrumentation Stability & Suspension Lighting Collision Avoidance Engine Control USB Electronic Transmission Antilock Braking Safety Airbag Traction Control Security Active Noise Cancellation Multi-zone Climate Control Auto Toll Payment Compass LED Brake Lights Backup Sensor Power Window Sensor Angular Acceleration Sensors Seat Position & Seat Heating Steering Wheel Sensors Transmission Control & Gearbox Position Sense Brake Pressure Tire Pressure Monitor Engine Control Headlights Smart Fusebox Rain Sensor Dashboard Electronics Keyless Entry Customers Revenue: $241MM (1) (1) (1) Revenue: $169MM (1) (1) (1) (1) Revenues represent last twelve months ending September 2007. (2) Represents combined financials as reported for the last twelve months ending
September 2007 for ON Semiconductor and AMI Semiconductor. Customers
Pro Forma Combined Revenue: $410MM(2) |
12 For Internal Use Only AMI/ON Semiconductor Customers Customers Applications Military Radios / Battlefield Communications Cockpit Displays Guidance Systems Munitions / Missile Systems Night Vision Applications LTM Revenues of $104MM (1) ~70 Customers Including Top 7 Medical Companies Leadership Position with 10% Market Share (2) LTM revenues of $48MM (1) Ranked #3 with 8% Market Share (3) New Market Opportunities (2) Based on Company estimates and Gartner data for 2006. (3) Based on Gartner data for 2006 Military / Aerospace ASIC market share. Military / Aerospace Medical Hearing Aids Neurological Stimulus Management Cardiovascular Management / Pacemakers Body Temperature Sensing Blood Glucose Monitoring CT Scan Ultrasound Portable X-ray Pulse Oximeters Blood Oxygen/Chemistry Monitoring (1) Revenues represent last twelve months as of September 29, 2007. Implantable Defibrillators External Portable Defibrillators Cochlear Implants ECG Monitoring |
13 For Internal Use Only AMI/ON Semiconductor Broad and Deep Customer Relationships |
1 For Internal Use Only AMI/ON Semiconductor Leshan, China Aizu, Japan Gresham, OR Phoenix, AZ Roznov, Czech Republic Piestany, Slovakia Seremban, Malaysia (Site 1 & 2) Carmona, Philippines Oudenaarde, Belgium Pocatello, Idaho Key Locations Global Manufacturing Infrastructure Back-end Facilities: Leshan, China Seremban, Malaysia (Site-1) Carmona, Philippines Wafer Facilities: Roznov, Czech Republic Front-end Facilities: Phoenix, Arizona Gresham, Oregon Aizu, Japan Piestany, Slovakia Seremban, Malaysia (Site-2) Roznov, Czech Republic Legend Front-end Facilities: Pocatello, Idaho Oudenaarde, Belgium Back-end Facilities: Calamba, Philippines Calamba, Philippines |
15 For Internal Use Only AMI/ON Semiconductor Financial Overview ON (1,2) AMIS (1,2) Combined (3) Last Twelve Months (LTM) $522 $134 $388 EBITDA Employees Operating Margin Gross Margin Revenue 14,675 2,984 11,691 17.4% 13.6% 18.9% 40.0% 44.5% 38.2% $2,179 $619 $1,560 ($MM) Large revenue base with more than $2 billion in LTM revenue Strong combined gross and operating margins Significant cash flow generation (1) Revenues represent last twelve months ending September 2007 for ON Semiconductor and
AMI Semiconductor. (2) Non-GAAP Operating Margin excludes amortization of
acquisition and related intangibles and restructuring and impairment charges. (3) Represents combined financials as reported for the last twelve months ending
September 2007 for ON Semiconductor and AMI Semiconductor. |
16 For Internal Use Only AMI/ON Semiconductor Significant Revenue Scale $2,739 $2,546 $2,362 $2,179 $1,857 $1,657 $1,560 $1,316 $1,072 $725 $9,741 $10,923 $13,742 * Represents combined financials as reported for the last twelve months ending September 2007 for ON Semiconductor and AMI Semiconductor. ** As of 12/31/2006. / * ($ in millions) Combined Company Generates Economies of Scale and Improved Financial Performance ** |
17 For Internal Use Only AMI/ON Semiconductor A Look at the Transaction About ON Semiconductor What the Deal Means to You Open Q & A Overview |
18 For Internal Use Only AMI/ON Semiconductor Headquartered in Phoenix, Ariz., ON Semiconductor is a preferred provider of power solutions to engineers, networking, purchasing professionals, distributors and contract manufactures in the computer, cell phone, portable devices, automotive and industrial markets. About ON Semiconductor Powered by more than 11,000 employees around the world, we are a performance-based company committed to profitable growth, world-class operating results, benchmark quality and delivering superior customer and shareholder value. |
19 For Internal Use Only AMI/ON Semiconductor Focused on the Right Products - Automotive Stability & Suspension Lighting Instrumentation Electronic Transmission Electrochromatic Mirrors and Glass Communications Collision Avoidance Security Active Noise Cancellation Multi-zone Climate Control Antilock Braking Engine Control Traction Control Infotainment Safety Airbag USB > $3 content globally in 2006 > $13 content AMR in 2006 |
20 For Internal Use Only AMI/ON Semiconductor Served content per LCD TV 2006 to 2009 $3.30 to $4.40 53 M 124 M $3.30 $4.40 2 Generation LCD TV Solution Source: ON Semiconductor internal, iSuppli, Displaysearch 25-34 size <= 24 size >45 size 37-44 size $ ON Content / unit Focused on the Right Products Power Supplies nd |
21 For Internal Use Only AMI/ON Semiconductor Focused on the Right Products - Wireless $1.00 to $2.50 Content Mid-High End Phone GSM3G, PDA, GPS, Pager & Video Playback Core regulator Clocks Voltage references Adapter AC-DC Conversion Digital Camera Motor driver EMI filters w/ESD protect Speaker phone, MP3, Audio, walky-talky Audio op amps Analog switches Audio filters Longer battery life Power management Connector ESD protection array EMI filters USB filters w/ESD protection Battery Charging Over voltage protection MOSFETs On/Off switch MOSFETs Illumination White LED and RGB driver AMOLED power IC Camera Power flash EMI filters |
22 For Internal Use Only AMI/ON Semiconductor Leadership in Micro Packaging LLGA 0.84mm UDFN6 1.2mm LLGA 1.0mm MiniGate Logic Discrete Products SC-88 4.0mm SOT-5xx 2.56mm TSOP6 9.0mm 1970 1980
1990 2000 2002 2004 2006 2007 Future Putting existing products in new packages offers good re-use and ROI. Expertise in attaining the same power dissipation in a smaller footprint. Flexible manufacturing allows quick change over to different package types. SC70 4.0mm SC75 / SC-89 2.56mm SOT-1123 0.6mm SOT-723 1.44mm SOT23 9.0mm SOT-9xx 1.0mm TO-92 4.82mm DFN2 0.18mm SOT-5xx 2.56mm TO-3 1003mm 0 50,000 100,000 150,000 200,000 250,000 300,000 2002 2003 2004 2005 2006 2007 Micro Non-Micro Micro Packaging Growth Rate TM |
23 For Internal Use Only AMI/ON Semiconductor More Than 30 Billion Units Shipped in 2006 Putting Our Shipments into Perspective: ON Semiconductor produces one semiconductor unit for each human being on
earth
..every quarter A end-to-end line of ON Semiconductor parts produced in one year would circle the
earth close to four times. The units produced by ON Semiconductor since its inception lined up end-to-end would cover the distance between the earth and the moon
..and back. The surface covered by one year of ON Semiconductor shipments would cover 78 professional
football fields. Units Shipped 1997-2007E 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Sell-in units Sell-thru units Linear (Sell-in units) Q307E sell-in units up 4%; sell-thru units up 3% sequentially Q307: First time ever >8B units |
24 For Internal Use Only AMI/ON Semiconductor A Look at the Transaction About ON Semiconductor What the Deal Means to You Open Q & A Overview |
25 For Internal Use Only AMI/ON Semiconductor Frequently Asked Questions What happens after this initial announcement? AMI and ON Semiconductor will continue working closely to gather approvals and close the deal. We will also continue to thoughtfully refine our integration plans for the two
companies; however, we will operate as two separate companies. Will all operations remain in current locations? Some operations from the AMI Semiconductor headquarters would be moved to Phoenix. No other decisions have been made regarding other locations at this time. We will communicate more information as soon as it becomes available. Is the entire AMI business merging with ON Semiconductor? Yes, after the deal closed, AMI Semiconductor and ON Semiconductor will become one
company. We plan to leverage each others strength to make the combined
business stronger and bigger. Who will be the management team and Board of
Directors for the new company? ON Semiconductor President and CEO Keith
Jackson will serve as president and CEO of the combined company.
Corporate headquarters will remain in Phoenix, Arizona, with a significant presence maintained in Pocatello, Idaho, Belgium and various other locations
worldwide. ON Semiconductor non-executive Chairman J. Daniel McCranie will continue as non-executive chairman of the Board of Directors of the combined company, which will be expanded to
eight members with the addition of Christine King, CEO of AMIS.
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26 For Internal Use Only AMI/ON Semiconductor Frequently Asked Questions Will there be layoffs as a result of the merger? If so, how many and from which company? Although there will be many opportunities for current AMI employees to stay with ON Semiconductor, both companies are still working to determine the needs of the company after the acquisition. Employees will be informed as soon as we know which employees will be affected by the acquisition. Will all AMI employees be offered jobs in the new company? Both companies are still working on integration plans. Each company has their areas of strengths and areas that need to improve. We are hard at work on planning for execution of our integration plans and will communicate to you as these plans are finalized. Do you anticipate closing any fabs or other business operations? Some operations from the AMI headquarters would be moved to Phoenix. No other decisions have been made regarding other locations at this time. When decisions are made the news will be shared with employees.
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27 For Internal Use Only AMI/ON Semiconductor Communications Who or where should I direct questions? AMI: Submit questions to Acquisition_Questions@amis.com or speak with your manager ON Semiconductor: Speak with your manager For AMI Semiconductor employees: Insite, the company intranet Managers E-mails - global/regional/departmental emails Company and department meetings The Circuit Transitions, the acquisition newsletter dedicated to the deal Where can employees get more information? For ON Semiconductor employees: InsideON, the company intranet The Circuit Transitions, the acquisition newsletter dedicated to the deal Managers E-mail Company and department meetings |
28 For Internal Use Only AMI/ON Semiconductor Open Q & A |