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

American semiconductor manufacturer onsemi (ON Semiconductor Corporation) announced on July 7, 2026, that it has entered into agreements to divest two manufacturing facilities, a key component of its ... Read original →

onsemi’s divestment of its Tarlac and Mountain Top fabs isn’t just about $35M in savings—it’s a strategic recalibration amid splintering tech sovereignty. Offloading legacy 8-inch capacity frees capital to scale SiC and GaN for automotive and AI infrastructure, nudging equipment vendors toward high-margin niches. Partnering with Greatek (Taiwan, China) and Silex (Sweden) enhances regional supply resilience but invites scrutiny under U.S. CHIPS Act guardrails, potentially inflating compliance overhead. Competitors like Infineon and STMicroelectronics may accelerate similar asset-light pivots, outsourcing mature nodes—opening doors for TSMC and UMC to dominate specialty foundry services. Over the next 18 months, expect a second wave of fab rationalization, cementing a hybrid IDM model: core technologies in-house, legacy processes outsourced. Pricing power in mature nodes is shifting decisively from West to East.