The chipmaker expects annual savings of $35 million starting in 2027 as part of its efficiency strategy.
Onsemi will sell two manufacturing plants to Greatek Electronics and Silex Microsystems as part of a cost-reduction plan. The deals aim to save $35 million annually, with initial benefits beginning in 2027 and full impact by 2028.
The company’s shares have risen nearly 75% this year but fell over 3% in premarket trading following the announcement. Onsemi cited its “Fab Right” strategy to improve efficiency and focus on scalable operations.
The Philippines facility sale to Greatek is set to close within six months, while the Pennsylvania plant deal with Silex will finalize in January 2028. Both sites will continue operating during transitions, with supply agreements in place to avoid disruptions.