In the same year, major power semiconductor makers have moved in opposite directions on manufacturing assets. Infineon opened one of the world's largest new fabs, while onsemi is divesting fabs. Expansion and asset-light restructuring are happening at the same time. This split shows that, after the SiC impairment cycle, the power semiconductor industry is rethinking how it owns manufacturing assets while judging where demand will actually land. For procurement teams, whether a supplier is expanding or consolidating becomes evidence for supply continuity.
Infineon: adding capacity through a world-scale fab
On July 2, 2026, Infineon opened one of the world's largest power semiconductor and analog/mixed-signal fabs in Dresden. It is a large project: EUR 5 billion of investment and about 1,000 jobs. The target applications are explicit: AI data center power, renewable energy, power grids, and SDV. Even as several companies slowed SiC investment after impairments, Infineon stepped into front-end capacity expansion. Its bet is to place demand pillars in AI data centers and power infrastructure, then build supply capacity ahead of that demand.
onsemi: selling two fabs to narrow the footprint
In contrast, onsemi is selling manufacturing sites as part of its Fab Right strategy. It has agreed to sell the Tarlac fab in the Philippines to Greatek Electronics of Taiwan, and it plans to transfer the Mountain Top fab in Pennsylvania to Silex Microsystems of Sweden, with closing expected in January 2028. The two divestitures are expected to generate about USD 35 million in annual cost savings, fully realized in 2028. onsemi's Fab Right strategy is a plan to concentrate manufacturing resources on power semiconductors for automotive, industrial, and AI data center applications, letting go of broader-use sites and narrowing toward higher-value domains.
The buyers matter as well. Greatek expands packaging capacity by acquiring the Philippines site, while Silex acquires onsemi's Pennsylvania fab. The assets onsemi is releasing remain in the supply chain as capacity under other players.
How to read the split
Infineon's expansion and onsemi's consolidation are not a contradiction; they are two sides of the same demand view. Both companies name AI data centers as a key application. What differs is the asset model: Infineon is thickening in-house capability, while onsemi is becoming lighter and concentrating on higher-value areas. After the lesson of impairments, where misreading demand comes back as excess capacity, companies are choosing again where to bet and what to release.
Infineon expansion vs. onsemi consolidation
01
Infineon: expansion
Opened a world-scale fab in Dresden with EUR 5 billion of investment and about 1,000 jobs. Targets AI data center power, renewables, grids, and SDV while thickening in-house capability.
02
onsemi: consolidation
Selling two fabs under Fab Right: Tarlac to Greatek, and Mountain Top to Silex with January 2028 closing expected. About USD 35 million in annual savings, focused on automotive, industrial, and AI data centers.
03
Shared demand view
Both companies identify AI data centers as a major application. The difference is the asset model: in-house expansion or consolidation, not the direction of demand.
04
Supply-chain implication
The sites onsemi exits remain as Greatek/Silex capacity. Buyers should track how each supplier's expansion or consolidation affects supply continuity.
Business impact and checkpoints
From a procurement and investment perspective, the checks are: 1. whether an adopted supplier is expanding or consolidating, because that shapes future supply capability; 2. who gains the divested sites and what applications those sites will support; and 3. whether each company's stated priority applications, such as AI data centers, automotive, and industrial, match the buyer's own components. Fab additions and reductions are not just company news. They can be read as leading indicators for supply continuity and pricing several years ahead. What follows the impairment cycle is a restructuring of manufacturing assets around expected demand.
Ongoing capacity, impairment, supply-agreement, and wafer-scaling moves across major suppliers are tracked in our Power Semiconductor Supply & Capacity Tracker (CSV/JSON available).
