onsemi agrees to sell two chip plants, targeting $35M in annual savings

Onsemi (Nasdaq: ON) has signed definitive agreements to divest two manufacturing facilities, one in Tarlac, Philippines, and one in Mountain Top, Pennsylvania, according to a press release from the Scottsdale, Arizona-based company.

The Tarlac facility will be sold to Greatek Electronics Inc., a Taiwan-based semiconductor company specializing in integrated circuit packaging and testing. That transaction is expected to close within three to six months, subject to regulatory approvals and customary closing conditions. Onsemi and Greatek have established a long-term supply agreement to maintain production continuity for customers after the deal closes.

The Mountain Top, Pennsylvania facility will be sold to Silex Microsystems, a Sweden-based semiconductor company. That transaction is expected to close in January 2028, subject to similar conditions. The longer transition period is intended to allow onsemi to transfer products currently made at the site to other facilities within its network.

The two divestitures are projected to generate annual cost savings of approximately $35 million, with initial savings beginning in 2027 and the full amount realized in 2028. Onsemi described the moves as part of its "Fab Right" strategy, which focuses on optimizing its global manufacturing footprint.

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