On Semiconductor: Umsatz und Margen fallen – keine Entwarnung für Halbleitersektor from

On Semiconductor: Revenue and Margin Fall - No Respite for Semiconductor Sector

Revenue Drops as Supply Chain Disruptions Persist

On Semiconductor, a leading semiconductor manufacturer, has reported a decline in revenue and margins for the third quarter of 2023. The company attributed the downturn to ongoing supply chain disruptions and macroeconomic challenges. Despite strong demand for its products, On Semiconductor has been grappling with production constraints and component shortages, leading to lower output and higher costs.

Margins Squeezed by Rising Costs and Lower Demand

The company's gross margin fell by 3 percentage points, reflecting the impact of rising material and manufacturing costs. Additionally, a slowdown in the consumer electronics market has reduced demand for On Semiconductor's products, further pressuring margins. The company expects these challenges to continue in the near term.

Supply Chain Issues Hamper Production

On Semiconductor is not alone in facing supply chain disruptions. The global semiconductor industry has been grappling with shortages of raw materials, production capacity constraints, and transportation delays. These issues have driven up costs and led to production delays, impacting the entire supply chain.

Economic Challenges Weigh on Demand

The macroeconomic downturn has also weighed on demand for semiconductors. Consumer spending has slowed in major markets, and businesses are becoming more cautious about their investments. This has led to a decline in orders for On Semiconductor's products, particularly in the automotive and industrial sectors.

Outlook Remains Uncertain

On Semiconductor's management team expressed caution about the outlook for the semiconductor sector. They expect supply chain disruptions and macroeconomic challenges to persist in the coming months. The company is taking steps to mitigate these risks by diversifying its customer base, investing in new technologies, and expanding its production capacity. However, the timing and impact of these measures are uncertain.