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Onsemi CEO Warns of Cautious Customers and Sliding Sales
4 Aug
Summary
- Onsemi's automotive revenue fell 4% in Q2 2025
- CEO cites "uncertainty in the automotive market"
- Onsemi stock plunges 13% on the news
In the second quarter of 2025, semiconductor manufacturer Onsemi (ON) faced significant headwinds in its automotive business. The company's automotive revenue fell 4% quarter-over-quarter to $733 million, contributing to a 15% year-over-year decline in overall revenue to $1.47 billion.
Onsemi's CEO, Hassane El-Khoury, attributed the challenges to a broader sense of uncertainty in the automotive market. "Both Europe and North America are weak," he said, "and there's a lot of uncertainty in the automotive market." El-Khoury explained that customers are being "cautious" and waiting until the last minute to place orders, further impacting Onsemi's sales.
The news sent Onsemi's stock plunging 13% on Monday, making it the worst-performing stock in the S&P 500 for the day. Despite the setback, the company remains optimistic about its long-term prospects, with El-Khoury stating that Onsemi is "well-positioned to benefit from a market recovery."
