onsemi to divest two manufacturing facilities for cost savings By Investing.com - Investing.com Canada

US semiconductor manufacturer onsemi has announced plans to divest two of its US manufacturing facilities as part of cost-saving measures. This strategic decision reflects the current challenges facin... Read original →

onsemi’s divestiture of two U.S. fabs is less about cost-cutting and more a strategic pivot toward wide-bandgap semiconductors like SiC and GaN. This move risks eroding internal redundancy in legacy BCD processes, likely shifting supply reliance to external IDMs or foundries in Taiwan, China. Amid tightening CHIPS Act compliance scrutiny, shedding older facilities avoids future regulatory overhead but reveals vulnerability in domestic mature-node resilience. Competitors like Infineon and STMicroelectronics may aggressively target onsemi’s automotive IGBT clients in North America. Over the next 18 months, expect a wave of 'asset-light IDM' transitions—retaining IP and packaging while outsourcing fabrication. This restructuring will reshape global power semiconductor capacity geography and trigger a surge in used equipment liquidity, lowering capex barriers for new entrants.