ON Semiconductor Offloads Two Plants to Trim Costs

ON Semiconductor is shedding two manufacturing sites—one in the Philippines and another in Pennsylvania—to sharpen its operational focus and lower overhead. The chip maker anticipates these divestitures will unlock roughly $35 million in annual savings as it consolidates production into a more streamlined global network.

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The company will transfer its Philippine facility to the Taiwanese firm Greatek Electronics, with the deal expected to close within six months. To prevent disruptions, the two companies have inked a long-term supply agreement ensuring production continuity for existing customers.

Meanwhile, the Pennsylvania site will move to the Swedish manufacturer Silex Microsystems in January 2028. This extended timeline provides a buffer, allowing the company to migrate its current product lines to other internal hubs. While financial terms remain under wraps, the market reacted with caution, as shares dipped 2.6% to $92.25 in premarket trading. Savings from these moves are projected to begin next year, with the full financial impact realized by 2028.

ON Semiconductor Offloads Two Plants to Trim Costs

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