U.S. semiconductor company Onsemi is accelerating its manufacturing optimization strategy by agreeing to sell two chip manufacturing facilities as it seeks to reduce costs, improve operational efficiency, and strengthen profit margins. The announcement comes as the company’s shares have climbed nearly 75 percent so far in 2026, although the stock slipped by more than 3 percent in premarket trading following the news, Reuters news report said.
The divestment is part of Onsemi’s long-term “Fab Right” manufacturing strategy, which focuses on concentrating production at its most competitive and scalable facilities while lowering manufacturing costs across its global footprint. The company develops power management and sensing semiconductors used in electric vehicles, industrial automation systems, and AI data centers.
As part of the transactions, Onsemi will sell its Tarlac, Philippines semiconductor packaging and testing facility to Taiwan-based Greatek Electronics. The transaction is expected to close within three to six months. The company has also agreed to sell its Mountain Top, Pennsylvania manufacturing site to Sweden’s Silex Microsystems, with the deal scheduled to close in January 2028, allowing sufficient time to transfer production to other manufacturing locations.
While Onsemi has not disclosed the financial value of either transaction, it confirmed that both facilities will continue operating during their transition periods. The company has also entered into a long-term supply agreement with Greatek Electronics to ensure uninterrupted product deliveries and minimize any disruption for customers.
Onsemi earlier said it expects second-quarter 2026 revenue to range between $1.54 billion and $1.64 billion. Onsemi’s revenue rose to $1.513 billion in the first quarter of 2026, rising from $1.45 billion in the same period last year. AI-related demand, particularly from data center customers, contributed significantly to growth, with AI data center revenue more than doubling year-on-year. Onsemi posted net loss of $33.4 million, or $0.08 per diluted share, a substantial improvement from the $486.1 million loss, or $1.15 per share, reported a year earlier.