ON Semiconductor Corporation reported a revenue of $7.08 billion for the fiscal year ending December 31, 2024, marking a 14.2% decrease from $8.25 billion in 2023. The company's net income attributable to shareholders also declined to $1.57 billion, down from $2.18 billion in the previous year. Operating income fell to $1.77 billion, compared to $2.54 billion in 2023, with a gross margin of 45.4%, down from 47.1%. The decline in financial performance was attributed to decreased demand in the automotive and industrial markets, leading to lower sales volumes and underutilization of manufacturing facilities.
In terms of strategic developments, ON Semiconductor completed the acquisition of the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business from Qorvo US, Inc. on January 14, 2025, for $118.8 million. This acquisition is expected to enhance the company's EliteSiC power portfolio and address the growing demand for energy-efficient solutions in AI data centers. Additionally, the company underwent a significant business realignment in 2024, resulting in the termination of approximately 1,200 employees and the reassignment of around 300 others, incurring related charges of approximately $129.8 million.
Operationally, ON Semiconductor's workforce as of December 31, 2024, consisted of approximately 26,400 full-time employees, with a significant portion engaged in manufacturing roles. The company reported that sales to distributors accounted for about 53% of total revenue in 2024, while direct customer sales made up the remaining 47%. Geographically, the company generated 25.1% of its revenue from Hong Kong, 24.5% from Singapore, and 23.1% from the United Kingdom, indicating a diverse market presence.
Looking ahead, ON Semiconductor anticipates continued challenges in the semiconductor industry due to macroeconomic factors and softening demand. The company is actively managing its manufacturing capacity and operational costs to align with forecasted demand. Despite the current volatility, ON Semiconductor remains committed to its long-term strategic initiatives and growth plans, particularly in the automotive and industrial sectors, which are expected to drive future revenue. The company plans to maintain its focus on high-margin products and efficient capital allocation to support ongoing growth.
About ON SEMICONDUCTOR CORP
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