Onsemi (NASDAQ:ON) layoffs are a hot topic on Friday as the semiconductor company has announced plans to cut 1,000 jobs.A statement from Onsemi notes that these cuts will be global as it looks to reduce costs and streamline operations. This also has it closing down several sites, including its South Portland location, while asking around 300 employees to relocate.The reason for these changes is the slowing demand for electric vehicles (EVs). The company’s chips are used in EV drive trains to assist drivers. ...

Loading...Loading...Needham analyst Quinn Bolton reiterated ON Semiconductor Corp ON with a Buy rating and a $92 price target.The analyst hosted a virtual NDR with Thad Trent, CFO, and Parag Agarwal, VP of IR and Corporate Development, and came incrementally bullish towards ON shares ahead of the anticipated cyclical recovery.Bolton said cancellations and pushouts peaked late last year and have returned to normal.The company has seen stabilization in its traditional industrial business, which was first to f ...

In the latest trading session, ON Semiconductor Corp. (ON) closed at $72.31, marking a -0.19% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.23%.Heading into today, shares of the semiconductor components maker had gained 1.67% over the past month, lagging the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.51% in that time.Market participants will be closely following ...

ON Semiconductor Corporation (NASDAQ:ON) BofA Securities 2024 Global Technology Conference June 5, 2024 4:20 PM ET Company Participants Hassane El-Khoury - CEO Thad Trent - CFO Conference Call Participants Vivek Arya - Bank of America Vivek Arya Welcome, everyone, and good afternoon. Welcome to this session with the management team from ON Semiconductor. I'm Vivek Arya, I cover semiconductors at BofA Securities. I'm really delighted to have Hassane El-Khoury, CEO; and Thad Trent, CFO from onsemi. I'll go th ...

Company and Industry Overview * **Company**: ON Semiconductor Corporation (NASDAQ: ON) * **Industry**: Semiconductor * **Event**: BofA Securities 2024 Global Technology Conference * **Date**: June 5, 2024 Key Points Transformation and Growth Strategy * **Transition from Cyclical to Cyclical Growth**: ON Semiconductor has transitioned from a deep cyclical company to a more cyclical growth model with multiple product cycles. * **Fab-Like Strategy**: ON has implemented a fab-like strategy, divesting four fabs to reduce fixed costs and focus on high-growth areas. * **Product Portfolio Changes**: ON has walked away from $475 million of high-volatility business and redirected the company into high-growth areas like silicon carbide in EV. Financial Performance and Margin Expansion * **Improved Utilization and Margin**: ON's manufacturing footprint utilization is currently at 65%, with a margin floor of 45%. This is significantly better than previous cycles, where gross margins were in the low 30s. * **Long-Term Margin Target**: ON's long-term margin target is 53%, with significant potential for expansion as utilization increases and new products are introduced. * **East Fishkill Fab**: The East Fishkill fab acquisition has improved cost structures and cycle times, with a goal of achieving parity with other fabs. Industrial Segment * **Traditional vs. Secular Growth**: ON's industrial segment is divided into traditional (power tools, white goods) and secular growth (renewable energy, energy storage, factory automation). * **Stabilization**: The traditional industrial segment has stabilized, with some green shoots in medical and alternative energy. * **Conservative Outlook**: ON is conservative in calling for a bottom in the industrial market, emphasizing the need for demand pickup and end-demand recovery. Automotive Segment * **Flattish Growth**: ON expects the automotive business to be flattish in 2024, with growth in silicon carbide offsetting declines in other areas. * **Silicon Carbide Growth**: ON expects the silicon carbide market to grow 2x in 2024, driven by design wins and market share gains. * **Competition and Overcapacity**: ON is not concerned about overcapacity in the silicon carbide market, emphasizing the value-driven nature of the product and its technology advantage. AI and Data Center * **Power Tree for Cloud**: ON is developing a power tree for the cloud, leveraging its expertise from automotive and industrial segments. * **Cross-Selling Opportunities**: ON plans to cross-sell power switches, controllers, and drivers to customers in the cloud market. Second Half Recovery * **Balanced Approach**: ON is taking a balanced approach to the second half, preparing for both a recovery and a continuation of the current environment. * **Inventory and Utilization**: ON has a low inventory level and utilization of 65%, positioning the company to quickly react to any recovery. Conclusion ON Semiconductor is focused on transforming itself into a more sustainable and predictable company with a strong focus on high-growth areas like silicon carbide in EV and the cloud. The company is taking a conservative approach to the near-term outlook, emphasizing the need for demand pickup and end-demand recovery in the industrial and automotive markets.

Core Viewpoint - Onsemi is currently experiencing a decline in share price due to negative sentiment in the automotive and industrial sectors, but the long-term potential remains strong, particularly for FY25 and beyond, warranting a buy rating despite short-term concerns [3][12]. Financial Performance - The company's revenues have decreased by approximately 4% to 5% over the last year, which is considered manageable given the downturn in the automotive and industrial sectors [4]. - Margins have also been affected, with utilization rates dropping to around 65% in the most recent quarter, but management notes that gross margin expansions are ongoing despite this decline [6]. - The company's cash position is robust at approximately $2.6 billion against $2.5 billion in long-term debt, with interest expenses significantly reduced from $26.4 million to $16 million year-over-year [7]. Market Outlook - Analysts have been overly focused on the current downturn, failing to consider the long-term recovery potential as demand for products is expected to strengthen, particularly in the automotive sector with the rise of Hybrid Electric Vehicles (HEVs) [8]. - HEV sales saw a 59.5% year-over-year increase in February 2024, while Battery Electric Vehicles (BEVs) are projected to grow by 16.2% year-over-year in 2024 [8]. - The industrial sector shows signs of stabilization, although management is cautious about declaring a bottom just yet [8]. Valuation Insights - A forecasted revenue decrease of around 12.5% for FY24 is expected, followed by a rebound with a projected 10% compound annual growth rate (CAGR) over the next decade [9]. - Gross margins are anticipated to improve, reaching 51% by FY27, with potential for further increases as utilization rates normalize [10]. - The intrinsic value of Onsemi is estimated at around $74 per share, indicating it is currently trading at a slight discount [10].

It has been about a month since the last earnings report for ON Semiconductor Corp. (ON) . Shares have added about 5% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. onsemi Q1 Earnings Beat E ...

Expected to expand global business in the Chinese marketSEOUL, South Korea, May 23, 2024 /PRNewswire/ -- SEMIFIVE, a leading design solution provider and pioneer of platform-based custom silicon solutions, has announced its agreement of MOU with China-based Atron Technologies, on May 23, 2024. Through this agreement, SEMIFIVE and Atron Technologies will collaborate on comprehensive semiconductor design and turnkey manufacturing, seeking potential customers in China and onsite technical support.Atron Technol ...

Investing in the electric vehicle (EV) sector is not for the weak, and comes with a lot of risk and turbulence. Therefore, finding the best EV stocks to buy and hold is crucial to avoid losing your money. The year of 2024 has not been so hot, as the global economy navigates increasing inflationary pressures. Additionally, demand for EVs has softened significantly and many of the biggest players have lowered their prices to drive sales growth. This cyclical headwind is worrisome for traders but could provide ...

ON Semiconductor is in a slump, but it's navigating difficult times in admirable fashion.One of the leading producers of silicon carbide (SiC) power chips, ON Semiconductor (ON 1.70%), is in the midst of a slump. The company -- one of the biggest manufacturers of SiC chips along with STMicroelectronics and Wolfspeed -- is forecasting a tumble in revenue through at least the first half of 2024 because of a slowdown in electric vehicle (EV) sales. Shares are just above their low point of the past year. That s ...