July 8, 2026 /SemiMedia/ — onsemi said it will sell two manufacturing facilities as part of a broader effort to reduce costs, improve efficiency and raise margins.

The move is part of the company’s “Fab Right” strategy, which is designed to streamline its manufacturing footprint and focus resources on the most competitive and scalable parts of its business.

onsemi produces power chips and sensor chips used in electric vehicles, industrial equipment, factories and AI data centers. As demand grows for efficient power devices and intelligent sensing, the company is adjusting its manufacturing assets to improve long-term profitability.

The company’s facility in Tarlac, Philippines, will be sold to Greatek Electronics, a semiconductor packaging and testing company. The transaction is expected to close within the next three to six months.

onsemi’s facility in Mountain Top, Pennsylvania, will be sold to Swedish semiconductor company Silex Microsystems. That transaction is expected to close in January 2028, giving onsemi time to transfer production to other facilities.

Financial terms of the transactions were not disclosed.

The two facilities will continue operating during the transition period. onsemi has also entered into a long-term supply agreement with Greatek Electronics to ensure continuity of supply for customers.

The company expects the transactions to generate about $35 million in annual savings. Initial savings are expected to begin in 2027, with the full benefit realized in 2028.

Industry analysts said the divestitures show that onsemi is continuing to simplify its manufacturing network. By selling selected facilities, the company can reduce fixed costs and allocate more capital and management resources to higher-growth areas such as silicon carbide, power management, automotive sensing and AI data center power.

The restructuring comes as power semiconductor suppliers face mixed demand conditions. Electric vehicle demand has been uneven, industrial markets are recovering at different speeds, while AI data centers are increasing demand for high-efficiency power solutions.

For onsemi, the Fab Right strategy is not only about reducing capacity, but also about improving manufacturing flexibility and capital efficiency.