ON Semiconductor Corporation (ON)

ON Semiconductor's stock price has experienced a decline of 43% in the past six months, underperforming the Zacks Computer & Technology sector and the Semiconductor - Analog and Mixed industry. This decline is attributed to weak fourth-quarter 2024 revenues, a softer-than-expected financial outlook, automotive sector volatility, a restructuring plan announced in June 2024, and analyst rating changes.

Demand conditions for ON Semiconductor's products in its key industrial and automotive end markets have been muted, with ongoing inventory digestion. Management expected results to be below typical seasonal patterns for the first half of 2025, and they are not planning for an industry recovery in 2025. The company has seen a slowdown in "turns business", leading to lower fab utilization rates. Regionally, China and Japan are showing recovery with strength in Battery Electric Vehicles (BEVs), but North America and the European Union remain soft in both automotive and industrial sectors. Automotive revenue declined sequentially due to weakness in Europe and seasonality in Asia.

ON Semiconductor Corp., now branded as onsemi, is a global supplier of semiconductor-based solutions, specializing in intelligent power and sensing technologies. onsemi operates within the semiconductor industry, providing high-performance, energy-efficient semiconductor solutions primarily for the automotive and industrial markets. Its major products include power management solutions, intelligent sensing solutions, and other products such as power and signal management, logic, discrete, and custom devices.

onsemi operates globally with manufacturing facilities, design centers, and sales offices across North America, Europe, and Asia Pacific regions. Key locations include Scottsdale and Nampa in the USA, Brno and Rožnov in the Czech Republic, and Leshan and Shenzhen in China. The company's revenue streams also reflect a global presence, with significant contributions from the United Kingdom and Singapore.

onsemi has received recognition for its sustainability and ethical practices. In 2024, it was included in the Dow Jones Sustainability Index for the third consecutive year and recognized as one of the World's Most Ethical Companies® for the seventh consecutive year. The company also maintained its Platinum level recognition from EcoVadis for the fifth consecutive year and was named one of Barron's 100 "Most Sustainable Companies" for four years in a row. Events that may have affected its reputation in the past year include a workforce reduction and an investor alert regarding investigations into claims on behalf of investors.

ON Semiconductor is primarily owned by institutional shareholders, who hold approximately 98.86% of the company's stock. Insiders own about 42.54%, and retail investors hold 0.00%. According to other sources, institutional investors hold around 74.28% or 38.82%, insiders around 0.50%, and public companies and individual investors around 25.22% or 35.47%. Major institutional owners include Fmr LLC, Vanguard Group Inc, and Blackrock Inc. TPG Advisors II Inc is noted as the largest individual shareholder, owning 166.41 million shares, representing 39.82% of the company.