STOCKHOLM (dpa-AFX) - ON Semiconductor Corporation (ON), a semiconductor company, said on Tuesday that it has inked deals to sell two production plants as part of its ongoing initiative to cut costs to drive gross margin expansion.
These transactions are expected to result in cost savings of around $35 million a year, with initial savings starting in 2027 and the full savings to be realized in 2028.
ON Semiconductor will sell its Tarlac site to Greatek Electronics Inc., a Taiwanese semiconductor firm. The transaction is expected to close within the next three to six months. Post transaction, the companies will support ongoing production and ensure continuity for customer commitments.
Silex Microsystems, a Swedish semiconductor firm, will acquire the company's Mountain Top facility in Pennsylvania. The transaction is expected to close in January 2028. The extended transition period will allow the seller to continue an orderly transfer of the products manufactured at the site to other facilities within its network to ensure continuity for its customers and migration of technologies.
ON was down by 3.66% at $91.22 in the pre-market trade on the Nasdaq.
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