Onsemi Sells Two Manufacturing Sites to Cut Annual Costs

Onsemi entered into definitive agreements on July 7, 2026, to divest two manufacturing facilities as part of its Fab Right strategy to optimize its global footprint and increase profit margins. The company will sell its Tarlac, Philippines site to Greatek Electronics Inc., a Taiwan-based firm specializing in integrated circuit packaging and testing, with the deal expected to close within three to six months.

Additionally, the company will sell its Mountain Top, Pennsylvania facility to Silex Microsystems, a Sweden-based semiconductor company. This transaction is slated for closure in January 2028 to facilitate an orderly product transfer to other network facilities. Both sites will remain operational during the transition period to ensure continuity.

These divestitures are projected to generate approximately $35 million in annual cost savings, with initial savings beginning in 2027 and full realization by 2028. To prevent customer disruption, the company established a long-term supply agreement with Greatek Electronics Inc. for the Tarlac site. Following the announcement, Onsemi shares fell more than 3% in premarket trading.