onsemi to Sell Manufacturing Facilities in the Philippines and US - thelec.net

onsemi has announced plans to sell its manufacturing facilities in the Philippines and the United States, marking a significant strategic realignment in the global semiconductor industry. This move re... Read original →

onsemi’s divestment of its Philippine and U.S. fabs signals a strategic retreat toward high-margin domains. Technically, shedding legacy-node capacity accelerates its pivot to SiC, IGBTs, and AI-optimized power ICs—fueling demand for advanced packaging in automotive HPC. On compliance, rising operational costs under the U.S. CHIPS Act and Southeast Asian geopolitical volatility render asset-heavy models unsustainable; offloading non-core sites reduces export-control exposure. Korean rivals like Samsung and SK Hynix may opportunistically acquire discounted equipment to boost capital efficiency at 2nm/1.4nm nodes. Over the next 12–24 months, expect a wave of ‘asset-light, IP-heavy’ M&A, especially where power semiconductors intersect with edge AI—making fab liquidity a structural constraint.