Onsemi has signed definitive agreements to sell semiconductor manufacturing facilities in Tarlac, Philippines, and Mountain Top, Pennsylvania, as it reshapes its global production network under its Fab Right strategy.
The Tarlac operation will be acquired by Greatek Electronics, a Taiwan-based provider of integrated circuit packaging and testing services. Onsemi expects the transaction to close within three to six months, subject to regulatory approval and other customary conditions.
Production will continue at the site during the transition. The two companies have arranged a long-term supply agreement to support existing customer programs after the sale closes.
Silex Microsystems, a Swedish semiconductor company, has agreed to acquire the Mountain Top facility. That transaction has a longer timetable and is expected to close in January 2028.
The extended transition will give Onsemi time to move products and manufacturing technologies from Mountain Top to other plants in its network. The company said the phased approach is intended to maintain customer supply while the transfer takes place.
No purchase prices or workforce plans were disclosed in the announcement.
The two divestitures form part of Onsemi’s Fab Right manufacturing strategy, which concentrates investment and production at operations the company considers scalable, cost-competitive, and closely matched to its technology plans.
Rather than treating every facility in the network the same way, the strategy directs resources towards plants that can support future product demand and stronger manufacturing economics. The Tarlac and Mountain Top agreements mark another step in that process.
Onsemi expects the transactions to generate about $35 million in annual cost savings. Initial savings are projected to begin in 2027, with the full amount expected in 2028 once both transitions have progressed.
The immediate task is to complete two complex transfers without disrupting customers that depend on the company’s power and sensing products.
Article source: Onsemi
