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Onsemi Beats Expectations on Chip Demand Surge
5 May
Summary
- Onsemi forecasts Q2 revenue surpassing Wall Street estimates.
- Demand for silicon carbide chips critical for EVs is recovering.
- CEO cites moving beyond a cyclical trough towards recovery.
Onsemi announced on Monday that it expects its second-quarter revenue to surpass Wall Street's projections. This optimistic forecast is underpinned by a notable recovery in demand for the company's semiconductor chips, particularly those used in the automotive sector.
The company highlighted the resurgence of demand for its silicon carbide chips, which are essential components for enhancing the range of electric vehicles. This demand increase signifies a positive trend for the EV market and Onsemi's role within it.
CEO Hassane El-Khoury expressed confidence, stating that the company has successfully navigated past a cyclical low point. He indicated that demand strengthened considerably through the previous quarter, positioning Onsemi on a clear path toward sustained recovery and growth.
