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Onsemi Revenue Dips Amid Inventory Glut
10 Feb
Summary
- Onsemi missed Q4 revenue estimates due to an 11% decline.
- Business segments experienced up to 17% revenue drop.
- Company forecasts first-quarter revenue below analysts' expectations.
Chipmaker Onsemi experienced a challenging fourth quarter, reporting revenue of $1.53 billion, an 11% year-over-year decline that fell short of Wall Street's projections. This downturn was primarily driven by an ongoing inventory glut, causing customers to work through excess chip stockpiles.
The company's key business segments showed significant weakness. The power solutions group, Onsemi's largest revenue contributor, saw an 11% decrease in revenue. Furthermore, the intelligent sensing group experienced a substantial 17% drop, while the analog and mixed-signal segment reported a 9% fall.
Looking ahead, Onsemi projects first-quarter revenue to be between $1.44 billion and $1.54 billion. The midpoint of this range falls below analysts' current estimates of $1.51 billion, indicating that the company expects these challenges to persist into the new year. Factors such as increased competition in silicon carbide chips and slower-than-expected electric vehicle sales are contributing to the subdued outlook.
