Onsemi to sell two chipmaking plants to cut costs

1 month ago 23

Reuters

Tue, July 7, 2026 astatine 7:08 AM CDT 1 min read

July 7 (Reuters) - Chipmaker Onsemi connected Tuesday said it volition merchantability 2 manufacturing facilities arsenic portion of ‌broader propulsion to chopped costs and boost nett ‌margins.

Shares of the institution were down much than 3% successful premarket trading. They person gained astir 75% this year.

Here are immoderate details:

• Onsemi makes powerfulness and sensing chips utilized successful electrical vehicles, factories and AI information centers.

• The determination is portion ‌of its "Fab Right" ⁠strategy to chopped costs, amended ratio and nonstop resources toward its astir competitory and scalable ⁠operations, the institution said.

• Onsemi's installation successful Tarlac, Philippines volition beryllium sold to Taiwanese spot steadfast Greatek Electronics, which specializes successful semiconductor packaging and testing. The deal is expected to ‌close successful the adjacent 3 to six months.

• Its Mountain Top, Pennsylvania, tract volition spell to Swedish semiconductor institution Silex Microsystems; the transaction is expected to adjacent successful January 2028, giving Onsemi clip to determination accumulation to different ‌facilities.

• The institution did not disclose the fiscal presumption of the deals.

• Both sites volition keep moving during their modulation periods, and ‌Onsemi has agreed to a long-term proviso woody with Greatek to guarantee customers are not disrupted.

• Together, the income are expected to prevention Onsemi astir $35 million annually, with ‌initial savings opening successful 2027 and the afloat benefit realized successful 2028.

(Reporting by Anhata Rooprai successful Bengaluru; Editing by Sahal Muhammed)

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