Onsemi to sell two chipmaking plants to cut costs

Chipmaker Onsemi said it will sell two manufacturing facilities as part of broader push ​to cut costs and boost profit margins.
Shares ‌of the company were down more than 3% in premarket trading. They have gained nearly 75% this year.

Onsemi makes power and sensing chips used ​in electric vehicles, factories and AI data centers.

The move ⁠is part of its “Fab Right” strategy to cut ​costs, improve efficiency and direct resources toward its most ​competitive and scalable operations, the company said.

Onsemi’s facility in Tarlac, Philippines will be sold to Taiwanese chip firm Greatek Electronics, ​which specializes in semiconductor packaging and testing. The ​deal is expected to close in the next three to six ‌months.

Its ⁠Mountain Top, Pennsylvania, site will go to Swedish semiconductor company Silex Microsystems; the transaction is expected to close in January 2028, giving Onsemi time to move production ​to other ​facilities.

The company ⁠did not disclose the financial terms of the deals.

Both sites will keep running ​during their transition periods, and Onsemi has ​agreed ⁠to a long-term supply deal with Greatek to ensure customers are not disrupted.

Together, the sales are expected to ⁠save ​Onsemi around $35 million annually, with initial ​savings beginning in 2027 and the full benefit realized in 2028. Reuters