Onsemi Divests Two Manufacturing Facilities

Onsemi has entered into definitive agreements to divest two manufacturing facilities. The two sites that are being divested are Tarlac, Philippines, and Mountain Top, Pennsylvania. 

These planned divestitures are part of onsemi’s ongoing initiative to improve companywide manufacturing cost structure to drive sustained gross margin expansion as part of its Fab Right strategy.

Onsemi’s Fab Right manufacturing strategy focuses on continuous optimization of the manufacturing footprint and directs resources to the most competitive, scalable, and technology-aligned operations across its global manufacturing footprint. 

This approach is designed to improve onsemi’s long-term cost structure and strengthen overall competitiveness by enabling a highly efficient manufacturing network.

For the Tarlac site, onsemi has agreed with Greatek Electronics Inc., a Taiwan-based semiconductor company specializing in integrated circuit packaging and testing services. The transaction is expected to close within the next three to six months, subject to customary closing conditions and regulatory approvals.

The Tarlac site will continue operating as part of onsemi’s manufacturing network throughout the transition period. The companies have established a long-term supply agreement to support ongoing production and ensure continuity for customer commitments following the close of the transaction.

Onsemi has also agreed with Silex Microsystems, a Sweden-based semiconductor company, for the Mountain Top facility. The transaction is expected to close in January 2028, subject to customary closing conditions and regulatory approvals.

The extended transition period is intended to allow onsemi to continue an orderly transfer of the products currently manufactured at the site to other facilities within its network, ensuring continuity for customers and a structured migration of technologies.