ON Semiconductor Corp. said it would buy Fairchild Semiconductor International Inc in a $2.4 billion deal, the latest in a rapidly consolidating semiconductor industry.

The offer of $20 per share represents a premium of nearly 12 per cent to Fairchild’s Tuesday close. Shares of Fairchild were trading at $19.40 before the opening bell yesterday.

The semiconductor industry is seeing a wave of deals as companies seek to meet demand for cheaper chips and to diversify portfolios.

The deal will help ON Semiconductor expand its power semiconductor business, which makes chips used to improve power efficiency in products ranging from cars to smartphones.

The deal is expected to close late in the second quarter of 2016.