Onsemi to sell two chipmaking plants to cut costs

July 7 (Reuters) - Chipmaker ‌Onsemi on Tuesday ​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.

Here are ‌some details:

• 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.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal ‌Muhammed)

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