On Semiconductr Stock Price, News & Analysis

onsemi (NASDAQ: ON) has announced the termination of its efforts to acquire Allegro MicroSystems (NASDAQ: ALGM) and withdrawn its all-cash proposal of $35.10 per share. The decision comes after Allegro's Board of Directors showed reluctance to fully engage with the proposal.

Despite believing in the potential benefits of combining the two complementary businesses, onsemi determined there was no actionable path forward. The company will instead focus on other opportunities to enhance stockholder value and continue allocating capital towards its existing share repurchase program.

CEO Hassane El-Khoury emphasized onsemi's commitment to disciplined capital allocation and highlighted the company's strong position in core markets of automotive, industrial, and AI data centers, supported by market-leading technology and a robust innovation pipeline.

onsemi has launched the Hyperlux™ ID family, the industry's first real-time, indirect time-of-flight (iToF) sensor capable of high-precision long-distance measurements and 3D imaging of fast-moving objects. The innovative sensor extends depth sensing up to 30 meters, quadrupling the range of standard iToF sensors while maintaining a smaller form factor.

Key features include:

• Simultaneous monochrome imaging and depth information capture
• Proprietary global shutter pixel architecture with on-board storage
• 1.2MP resolution with 3.5µm BSI pixels
• Real-time depth processing capabilities

The technology aims to enhance industrial applications including automation, robotics, manufacturing quality control, logistics, agriculture, and access control systems. Two models are available: the AF0130 with integrated processing for simplified integration, and the AF0131 allowing custom depth algorithms implementation.

onsemi (NASDAQ: ON) has proposed to acquire Allegro MicroSystems (NASDAQ: ALGM) for $35.10 per share in an all-cash transaction, valuing the company at an enterprise value of $6.9 billion. The offer represents a 57% premium to Allegro's unaffected closing share price on February 28, 2025.

The proposal follows multiple attempts by onsemi to engage with Allegro over six months, including an initial offer of $34.50 per share in September 2024. The combination would unite two complementary businesses in automotive and industrial markets, particularly in magnetic sensing and power ICs.

onsemi plans to finance the transaction through a combination of committed financing, cash on hand, and existing credit facilities. The company aims to create a diversified leader in automotive, industrial, and AI data center applications through this strategic acquisition.

onsemi reported Q4 2024 results with revenue of $1,722.5 million and GAAP diluted EPS of $0.88. The company achieved a GAAP gross margin of 45.2% and operating margin of 23.7%. Full-year 2024 free cash flow reached $1.2 billion, marking a 3X increase year-over-year.

Q4 showed revenue declines across segments, with PSG down 16% YoY to $809.4M, AMG down 18% to $610.6M, and ISG down 2% to $302.5M. Total revenue for 2024 was $7,082.3M, representing a 14% decrease from 2023.

Looking ahead to Q1 2025, onsemi projects revenue between $1,350-1,450 million with gross margin of 38.9-40.9% and diluted EPS of $0.42-0.52. The company emphasized its structural improvements and commitment to financial discipline despite market uncertainty.

onsemi has received validation from the Science Based Targets initiative (SBTi) for its near-term greenhouse gas emission reduction targets. The company commits to reduce absolute scope 1 and 2 GHG emissions by 58.8% and scope 3 GHG emissions by 35.0% by 2034 from a 2022 base year.

These reductions would result in approximately one million metric tons of CO2 equivalent (MTCO2e) fewer emissions for scope 1 and 2, and 80,000 MTCO2e fewer emissions for scope 3. The company plans to achieve these targets through process gas management, point-of-use abatement tools, deep decarbonization, energy conservation strategies, and supplier engagement.

Additionally, onsemi has committed that 71.3% of its suppliers by emissions will have science-based targets by 2029.

onsemi (Nasdaq: ON) has announced it will release its fourth quarter and full year 2024 financial results before market opening on Monday, February 10, 2025. The company will hold a conference call at 9 a.m. Eastern Time on the same day to discuss the results.

Investors and interested parties can participate through two channels: a live webcast available through the company's Investor Relations website section, which will remain accessible for 30 days after the event, or via teleconference by pre-registering through the provided link.

onsemi has completed the acquisition of Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, for $115 million in cash. The acquisition expands onsemi's market opportunity by $1.3 billion by 2030 and strengthens its position in high and mid voltage power semiconductors.

The SiC JFET technology will complement onsemi's EliteSiC power portfolio, addressing efficiency needs in AI data centers' power supply units. In electric vehicle applications, it improves efficiency and safety through solid-state switches in battery disconnect units. The technology also enables energy storage topologies and solid-state circuit breakers in industrial applications.

onsemi (ON) and DENSO announced a strengthened partnership to support the procurement of autonomous driving (AD) and advanced driver assistance systems (ADAS) technologies. The collaboration builds on their decade-long relationship where onsemi has supplied DENSO with intelligent automotive sensors. As part of this enhanced partnership, DENSO plans to acquire onsemi shares on the open market. The collaboration aims to improve vehicle intelligence and connectivity while helping reduce traffic accident fatalities.

onsemi has announced an agreement to acquire Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, for $115 million in cash. The acquisition is expected to expand onsemi's market opportunity by $1.3 billion within 5 years.

The deal will enhance onsemi's EliteSiC power portfolio, specifically addressing high energy efficiency needs in AI data center power supply units. SiC JFETs offer the lowest on-resistance per chip area, using less than half of any other technology, and are compatible with off-the-shelf drivers. These benefits enable faster development, reduced energy consumption, and lower system costs.

The transaction is expected to close in Q1 2025, subject to customary conditions.