Chipmaker Onsemi cuts jobs, forecast weak fourth-quarter on slowing EV demand

Leading chipmaker Onsemi has announced its financial results for the third quarter of 2023, reporting revenue of $2,181 million. This figure represents a slight decline when compared to the same period in the previous year when the company recorded $2,193 million in revenue.
Onsemi at a trade eventDespite the marginal dip in overall revenue, Onsemi achieved notable successes in key sectors. The company achieved a record-breaking $1.2 billion in automotive revenue, reflecting a substantial 33 percent increase compared to the previous year. Additionally, the industrial revenue saw an increase, reaching $616 million, though this was a more modest improvement.

Onsemi, which has reduced 1,360 jobs so far this year, will cut another 900 jobs.

Hassane El-Khoury, President and Chief Executive Officer of Onsemi, attributed the company’s success to ongoing efforts in driving structural improvements and operational efficiencies. In particular, he highlighted the expansion of the world’s largest silicon carbide fabrication facility in South Korea, which is now equipped to produce 150- and 200-millimeter wafers.

Onsemi has set its sights on a revenue target of $1,950 million to $2,050 million for the fourth quarter of 2023.

The company is well-known for supplying chips to prominent automakers, including European giant Volkswagen. These chips are integrated into various components of electric vehicles, playing a pivotal role in the functioning of electric drive trains, as well as aiding in the development of cutting-edge driver-assistance systems that rely on cameras and sensors.

Onsemi’s consistent efforts to enhance its semiconductor production capabilities and meet the growing demand for advanced automotive and industrial technologies are clearly reflected in its third-quarter performance.

The company continues to position itself as a key player in the rapidly evolving semiconductor industry, with a focus on innovation and adaptability in a dynamic market.

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