ON Semiconductor Drops 20% After $6.2 Billion Synaptics Deal, Defending $30 Billion AI Bet
Updated
Updated · CNBC · Jun 26
ON Semiconductor Drops 20% After $6.2 Billion Synaptics Deal, Defending $30 Billion AI Bet
3 articles · Updated · CNBC · Jun 26
Summary
ON Semiconductor shares fell 20% after investors reacted to its largest-ever acquisition, a $6.2 billion all-stock purchase of Synaptics aimed at expanding into physical AI.
CEO Hassane El-Khoury said the deal adds $30 billion to Onsemi’s addressable market by 2030 and brings edge AI, wireless connectivity and AI compute capabilities without product overlap.
Synaptics’ Astra platform is meant to strengthen Onsemi’s push into systems that sense and decide in real time, including robots and autonomous vehicles, while El-Khoury said the core automotive and data-center businesses remain strong.
The transaction, valued at about $7 billion including debt, is expected to close in mid-2027 and deliver $200 million in annual synergies within 18 months after closing.