onsemi Advances Fab Right Strategy with Agreements to Divest Two Manufacturing Facilities - GlobeNewswire

onsemi announced on July 7, 2026, the signing of definitive agreements to divest two manufacturing facilities in the Philippines and Pennsylvania, as part of its broader 'Fab Right' strategy. The init... Read original →

onsemi’s divestment of its Philippines and Pennsylvania fabs isn’t just about $35M in annual savings—it’s a strategic recalibration toward high-margin, technology-differentiated domains like automotive SiC and intelligent power. This forces upstream tool vendors to realign support and compels customers to adapt to a leaner, more concentrated supply base. Partnering with Greatek (Taiwan, China) and Silex (Sweden) ensures continuity but heightens scrutiny under U.S. CHIPS Act export controls. Competitors like Infineon and STMicroelectronics may exploit the transition window to pitch localized, resilient alternatives. Over the next 18 months, expect more IDMs to adopt similar 'Fab Right' rationalization, accelerating consolidation in legacy nodes while elevating specialty foundries and OSATs as critical nodes in the global semiconductor value chain.