Semiconductor manufacturer Onsemi has agreed to sell two chipmaking facilities as part of an effort to reduce costs, improve efficiency and strengthen profit margins under its ongoing “Fab Right” manufacturing strategy.
The company, which supplies power and sensing semiconductors for electric vehicles, industrial automation and artificial intelligence data centres, said the divestments are intended to optimise its global manufacturing footprint and focus resources on its most competitive and scalable operations.
Onsemi has reached an agreement to sell its facility in Tarlac, Philippines, to Taiwan-based Greatek Electronics, a company that specialises in semiconductor packaging and testing services. The transaction is expected to close within the next three to six months, subject to regulatory approvals and customary closing conditions.
The Tarlac facility will continue operating during the transition period, and the two companies have established a long-term supply agreement to ensure production continuity and support existing customer commitments after the sale is completed.
The chipmaker has also signed an agreement to divest another manufacturing site to Sweden-based semiconductor company Silex Microsystems. That transaction is expected to be finalised in January 2028, pending regulatory approvals and other standard closing requirements.
According to Onsemi, the extended transition period will allow for an orderly transfer of products currently manufactured at the site to other facilities within its network while minimising disruption for customers and enabling a structured migration of manufacturing technologies.
The company said the sales form part of its broader Fab Right strategy, which focuses on continuously evaluating and refining its manufacturing network to improve efficiency and align production capacity with long-term business priorities.
Onsemi expects the two divestments to generate annual cost savings of approximately $35 million. Initial savings are projected to begin in 2027, with the full financial benefit expected to be realised by 2028.
The company did not disclose the financial terms of either transaction.
The latest move reflects a wider effort by semiconductor manufacturers to streamline operations and improve profitability while adapting to changing market conditions and growing demand from sectors such as electric vehicles, industrial automation and AI infrastructure.
https://www.newelectronics.co.uk/co...g-facilities-as-part-of-cost-cutting-strategy