Greatek Electronics Acquires On Semiconductor’s Philippines Packaging Plant
ON•Greatek Electronics, a subsidiary of Powertech Technology, has approved the acquisition of On Semiconductor SSMP Philippines packaging and testing facility as part of its Taiwan+1 diversification strategy. This transaction transfers the entire Philippines packaging plant under Greatek’s control, potentially streamlining On Semiconductor’s supply chain and impacting its capacity deployment.
1. Transaction Details
Greatek Electronics, a subsidiary of Powertech Technology, has received board approval to acquire On Semiconductor SSMP Philippines, the packaging and testing services unit. The deal transfers all plant assets, equipment and staff to Greatek under undisclosed terms and remains subject to regulatory clearance.
2. Taiwan+1 Expansion Strategy
The acquisition advances Greatek’s Taiwan+1 plan by establishing a manufacturing footprint in the Philippines, reducing reliance on Taiwan-based facilities and mitigating geopolitical risk. It positions Greatek to offer more flexible packaging solutions to global semiconductor customers.
3. Supply Chain and Capacity Impact
By integrating the Philippines plant, Greatek gains additional packaging and testing capacity, enhancing service agility for its memory and logic chip clients. For On Semiconductor, divesting this non-core asset frees up capital and allows it to outsource packaging to Greatek while focusing on wafer fabrication.
4. On Semiconductor’s Strategic Refocus
The plant sale aligns with On Semiconductor’s strategy to concentrate on chip design and core manufacturing, leveraging external partners for back-end processes. The deal is expected to generate immediate proceeds that On Semiconductor can reinvest into R&D and expansion of its primary production facilities.
