Overview
- Onsemi announced on Tuesday that it has signed definitive agreements to sell its Tarlac, Philippines plant to Greatek Electronics and its Mountain Top, Pennsylvania plant to Silex Microsystems.
- The Tarlac deal is expected to close within three to six months and includes a long-term supply agreement meant to keep output steady during the handover.
- The Mountain Top sale carries a January 2028 closing date to give Onsemi time to move production to other facilities and avoid abrupt disruptions.
- Onsemi says the two divestitures will start producing cost savings in 2027 and should reach roughly $35 million in annual savings by 2028; the company did not disclose the sale prices.
- The moves reflect a broader industry trend of shifting less competitive packaging and test work to specialized providers and could pressure near-term investor sentiment as markets weigh execution timing against longer-term margin gains.