Onsemi Prioritizes AI and Industrial Demand Over Automotive Restocking Amid Revenue Growth
Onsemi (ON) is shifting its production capacity to prioritize high-growth AI data center and industrial sectors following a 175% surge in AI-related revenue during the third quarter. This strategic pivot has resulted in temporary delays for automotive customers attempting to replenish inventory, as the company manages limited chip supply to meet surging demand from major computing platforms. The company reported third-quarter revenue of $1.72 billion, an 11% year-over-year increase, with adjusted earnings rising to $0.90 per share. To bolster its position in the AI power management market, Onsemi announced a $600 million cash acquisition of Ferric, a developer of integrated voltage-regulator technology. This move is expected to significantly expand Onsemi's long-term revenue targets for the AI data center segment.
Topics: Acquisition AI Data Centers Automotive Industry Earnings Report Semiconductors