Onsemi to Offload Plants in Philippines and Pennsylvania, Targeting $35 Million in Annual Savings - finance.biggo.com

onsemi’s divestment of its Philippine and Pennsylvania fabs isn’t just cost-cutting—it’s a strategic correction to align legacy 200mm capacity with the accelerating shift toward wide-bandgap semiconductors. As SiC and GaN dominate next-gen power electronics, older nodes become liabilities. Geopolitically, selling the Philippine asset may draw scrutiny under U.S. CHIPS Act provisions on offshore investments, while a domestic buyer for the Pennsylvania fab would mitigate export control exposure. Competitors like Infineon and STMicroelectronics are poised to capture onsemi’s automotive IGBT clients, especially as EU EV mandates push localization. Over the next 18 months, expect more ‘fab rationalization’: mature-node production consolidates in low-cost ASEAN regions, while advanced power devices migrate to subsidy-rich U.S., EU, Japan, and South Korea—reshaping the global power semiconductor supply chain through structural realignment.