The chipmaker will divest facilities in the Philippines and the US as part of its “Fab Right” strategy, targeting annual savings of about US$35 million by 2028.
Chipmaker onsemi has announced plans to sell two of its semiconductor manufacturing facilities as part of its ongoing strategy to streamline operations, lower costs, and improve profitability.
The company, which develops power management and sensing chips for electric vehicles, industrial automation systems, and AI data centres, said the divestments align with its “Fab Right” initiative. The strategy focuses on optimizing its manufacturing footprint while concentrating investments on high-value, scalable production sites.
Under the plan, Onsemi will sell its semiconductor facility in Tarlac, Philippines, to Greatek Electronics, a Taiwan-based provider of semiconductor packaging and testing services. The transaction is expected to be completed within the next three to six months.
The company will also divest its Mountain Top, Pennsylvania, manufacturing site to Silex Microsystems. That deal is scheduled to close in January 2028, allowing sufficient time for Onsemi to transfer production to its other manufacturing locations.
Onsemi did not disclose the financial value of either transaction.
To ensure business continuity, both facilities will remain operational throughout the transition period. The company has also signed a long-term supply agreement with Greatek Electronics to maintain uninterrupted product availability for customers.
The divestments are expected to generate annual cost savings of approximately US$35 million. Onsemi expects to begin realizing savings in 2027, with the full financial impact anticipated by 2028.
