ON Semiconductor To Acquire Aura's Vcore Power Tech

Core Viewpoint - ON Semiconductor is acquiring Aura Semiconductor's Vcore power technologies and related intellectual property to enhance its capabilities in artificial intelligence data center power management [1] Group 1: Acquisition Details - The financial terms of the acquisition remain undisclosed [1] - The acquisition will expand ON Semiconductor's portfolio and support its strategy to provide end-to-end power solutions for AI infrastructure [1][3] - The deal is expected to close in the fourth quarter of 2025, with minimal near-term earnings impact and accretion thereafter, pending customary approvals [3] Group 2: Technology Integration - Sudhir Gopalswamy, president of ON Semiconductor's Intelligent Sensing and Analog and Mixed-Signal Group, stated that integrating Aura's technology will enhance power density, efficiency, and thermal performance, allowing for higher compute capacity per rack [2] - ON Semiconductor is known for its silicon and silicon carbide (SiC) power devices, providing solutions that include solid-state transformers and high-voltage distribution [3] Group 3: Financial Performance - As of June 30, 2025, ON Semiconductor held $2.83 billion in cash and equivalents [4] - The company has experienced a decline of over 18% year-to-date, underperforming the PHLX Semiconductor index, which has returned over 27% [4] - ON Semiconductor has failed to meet adjusted EPS estimates in at least two of the last three quarters and revenue consensus estimates in at least one quarter, with double-digit declines in revenue and adjusted EPS over the previous three quarters [4] Group 4: Market Outlook - Following the second-quarter results, CEO Hassane El-Khoury noted early signs of stabilization in key markets and expressed readiness to benefit from a recovery [5] - The company continues to invest in next-generation technologies to fuel growth and maintain its leadership position [5] - For the third quarter, ON Semiconductor forecasts adjusted revenue between $1.465 billion and $1.565 billion, with adjusted EPS projected between 54 cents and 64 cents, and an adjusted gross margin of 36.5% to 38.5% [6]