DivestmentJul 7, 2026, 07:02 AM
onsemi Divests Two Manufacturing Facilities for $35M Annual Savings
AI Summary
onsemi announced definitive agreements to divest two manufacturing facilities in Tarlac, Philippines, and Mountain Top, Pennsylvania. These divestitures are part of the company's 'Fab Right' strategy to improve its manufacturing cost structure and drive gross margin expansion. The transactions are expected to generate approximately $35 million in annual cost savings, with full realization by 2028. The company has established transition plans and supply agreements to ensure continuity for customers.
Key Highlights
- Divests Tarlac, Philippines manufacturing facility to Greatek Electronics Inc.
- Divests Mountain Top, Pennsylvania manufacturing facility to Silex Microsystems.
- Expected to result in approximately $35 million in annual cost savings.
- Tarlac transaction anticipated to close within the next three to six months.
- Mountain Top transaction expected to close in January 2028.
- Actions are part of onsemi's 'Fab Right' strategy to optimize manufacturing footprint.
- Established a long-term supply agreement for the Tarlac site.
Price Impact
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