On Semi Divests Two Manufacturing Facilities, Expected Annual Savings of $35M
On Semi announced it has entered into definitive agreements to divest two manufacturing facilities. These planned divestitures are part of onsemi's Fab Right strategy. On Semi has entered into an agreement with Greatek Electronics, a Taiwan-based semiconductor company. The transaction is expected to close within the next three to six months, subject to customary closing conditions and regulatory approvals. The Tarlac site will continue operating as part of On Semi's manufacturing network throughout the transition period. The companies have established a long-term supply agreement to support ongoing production and ensure continuity for customer commitments following the close of the transaction. On Semi has also entered into an agreement with Silex Microsystems, a Sweden-based semiconductor company. The transaction is expected to close in January 2028, subject to customary closing conditions and regulatory approvals. The extended transition period is intended to allow On Semi to continue an orderly transfer of the products currently manufactured at the site to other facilities within its network. These actions are expected to result in cost savings of approximately $35M per year, with initial savings starting in 2027 and the full savings realized in 2028.
