onsemi Advances Fab Right Strategy with Agreements to Divest Two Manufacturing Facilities - Yahoo Finance Australia

onsemi announced on July 7, 2026, that it has entered into definitive agreements to divest two manufacturing facilities, a key component of its Fab Right strategy. This initiative aims to optimize the... Read original →

onsemi’s divestiture of its Tarlac and Mountain Top fabs is a surgical execution of its Fab Right doctrine, not merely cost-cutting. Technologically, it sharpens focus on high-margin platforms like SiC and intelligent power, compelling equipment vendors to deprioritize legacy support and forcing customers to reassess supply continuity. Geopolitically, selling the Philippine fab to Greatek Electronics (Taiwan, China) may sidestep some U.S. export controls but invites heightened scrutiny amid U.S.-China tech decoupling. Rivals like Infineon or STMicroelectronics will likely poach industrial and automotive clients tied to the offloaded capacity. Over the next 18 months, expect accelerated ‘asset-light’ restructuring across the sector—leading IDMs are abandoning vertical self-reliance in favor of agile networks anchored by node leadership and regional compliance.