Onsemi to sell two chipmaking plants to cut costs

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

July 7 : 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 per cent in premarket trading. They have gained nearly 75 per cent this year.

Here are some details:

• Onsemi makes power and sensing chips used in electric vehicles, factories and AI data centers.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

• 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.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here