Onsemi, Semiconductor Company, Value Falls After Report

$4 Billion Lost in Market Value

After the latest data from the semiconductor industry was released by the Semiconductor Industry Association (SIA), shares of Onsemi Corporation (ON) fell by more than 5% in premarket trading.

This drop in the stock price resulted in a loss of more than $4 billion in market value for the company. The SIA report showed that global semiconductor sales declined by 3.2% in December 2022 compared to the previous month and decreased by 14.7% year-over-year.

The report also showed that semiconductor sales in the Americas declined by 7.9% in December compared to the previous month and dropped by 19.6% year-over-year. This decrease was the largest regional decline in semiconductor sales.

Decline in Demand and Global Economic Conditions

Analysts attribute the decline in semiconductor sales to a decrease in demand from major end markets, such as consumer electronics, personal computers, and smartphones. The global economic slowdown has also contributed to the decline in demand for semiconductors.

Onsemi is a leading supplier of power semiconductors, which are used in a wide range of electronic devices. The company's products are used in automotive, industrial, and consumer applications.

The decline in semiconductor sales is expected to negatively impact Onsemi's financial results in the coming quarters. The company is scheduled to report its fourth-quarter and full-year 2022 financial results on February 1, 2023.