onsemi to Divest Two Facilities, Targeting $35M Annual Cost Savings
ON has more than doubled off its 52-week low of $44.56.
Summary
onsemi announced agreements to divest two manufacturing facilities, located in Tarlac, Philippines, and Mountain Top, Pennsylvania, as part of a continuing streamlining effort under its 'Fab Right' initiative. This strategic move aims to optimize its manufacturing footprint and improve cost structure. The company has entered into an agreement with Silex Microsystems for one of these transactions, which is expected to close in January 2028. These divestitures are projected to generate approximately $35 million in annual cost savings, with initial benefits beginning in 2027 and full realization by 2028. This action follows recent significant M&A activity, including the acquisition of Synaptics, demonstrating onsemi's active portfolio management.
At the time of this announcement, ON was trading at $92.40 on NASDAQ in the Technology sector, with a market capitalization of approximately $36.9B. The 52-week trading range was $44.56 to $134.92. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.