OnSemi’s announces poor Q4 results with hints of cuts

Intelligent power and sensing chip company OnSemi has reported falling sales and profits in its 4Q24 and talked of “streamlining” the business during 2025 without providing further details.

OnSemi is heavily exposed to automotive and industrial sectors and this has driven sales downwards. The company made a net income of US$379.9 million on sales revenue of US$1,722.5 million. Sales were down 14.6 percent from US$2,018.1 million a year before and down 2.2 percent sequentially from US$1761.9 million. The net profit fell from US$562.7 million a year before.

For the full year 2024 OnSemi’s revenue fell to US$7,082.3 million, a drop of 14.2 percent from US$8,253.0 million revenue in 2023. The net income fell from US$2,183.7 million in 2023 to US$1,572.8 million in 2024.

In a statement Hassane El-Khoury, CEO of OnSemi, said that the company was well-equipped “to navigate prolonged volatility.” He also said the company was experiencing a market downturn. He added that the outlook across 2025 remains uncertain and that: “We will maintain our financial discipline, streamline our operations and continue to deliver high-value, differentiated intelligent power and sensing solutions that position OnSemi to emerge even stronger.”

NXP and STMicroelectronics, two other chip companies exposed to automotive and industrial markets, have both posted weak 4Q24 market results amid talks of lay-offs and other cost-cutting measures.

OnSemi forecast a further drop in revenue in the 1Q25 at between US$1,350 million and US$1,450 million at considerably lower diluted earnings per share than in 4Q24. At the mid-point this would represent a drop in revenue of 24.8 percent compared with 1Q24.