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onsemi announced that it has terminated its efforts to acquire Allegro MicroSystems, Inc. (“Allegro”) and withdrawn its all-cash proposal to acquire Allegro for $35.10 per share.
While onsemi continues to believe that a combination of these companies would have brought two highly complementary businesses together, benefiting their respective customers and delivering immediate value to Allegro shareholders, onsemi has determined there is no actionable path forward.
onsemi will focus on other existing opportunities to enhance stockholder value. In connection with today’s announcement, onsemi intends to continue to allocate capital towards the Company’s existing share repurchase program.
“onsemi is committed to taking a disciplined approach to capital allocation and maximizing long-term stockholder value,” said Hassane El-Khoury, president and CEO, onsemi. “While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both companies, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Directors to fully engage and explore our proposal. We continue to respect both the leadership team at Allegro as well as its talented base of employees.”
El-Khoury continued, “onsemi is well-positioned, both strategically and financially, and we remain sharply focused on executing on our core growth initiatives while pursuing our value-enhancing capital allocation approach. With market-leading technology, a robust innovation pipeline, and a clear strategic roadmap, we continue to see significant long-term opportunities in our core markets of automotive, industrial, and AI data centers.”
Original – onsemi
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onsemi introduced the first generation of its 1200V silicon carbide (SiC) metal oxide semiconductor field-effect transistor (MOSFET) based SPM 31 intelligent power modules (IPMs). onsemi EliteSiC SPM 31 IPMs deliver the highest energy efficiency and power density in the smallest form factor compared to using Field Stop 7 IGBT technology, resulting in lower total system cost than any other leading solution on the market.
Their improved thermal performance, reduced power losses and ability to support fast switching speeds makes these IPMs ideally suited for three-phase inverter drive applications such as electronically commutated (EC) fans in AI data centers, heat pumps, commercial HVAC systems, servo motors, robotics, variable frequency drives (VFDs), and industrial pumps and fans.
The EliteSiC SPM 31 IPMs offer several current ratings from 40A to 70A. Complemented by onsemi’s IGBT SPM 31 IPM portfolio, covering low currents from 15A to 35A, onsemi now provides the industry’s broadest range of scalable and flexible integrated power module solutions in a small package.
In 2023, operations of residential and commercial buildings accounted for 27.6% of U.S. end-use energy consumption. As electrification and AI adoption grow, particularly with the construction of more AI data centers increasing energy demands, the need to reduce the energy consumption of applications in this sector is becoming more critical. Power semiconductors capable of efficiently converting electric power are the key in this transition to a low-carbon-emissions world.
With the number and size of data centers growing, the demand for EC fans is expected to rise. These cooling fans maintain the ideal operating environment for all equipment in a data center and are essential for accurate, error-free data transmission. The SiC IPM ensures the EC fan operates reliably and at its highest efficiency.
Like many other industrial applications such as compressor drives and pumps, EC fans require higher power density and efficiency than existing larger IGBT solutions. By switching to EliteSiC SPM 31 IPMs, customers can benefit from a smaller footprint, higher performance, and a simplified design due to high integration, resulting in shortened development time and lower total system cost in addition to reduced GHG emissions. For example, compared to a system solution that uses a current IGBT power integrated module (PIM) with power losses of 500W at 70% load, implementing highly efficient EliteSiC SPM 31 IPMs could reduce the annual energy consumption and cost per EC fan by 52%.
The fully integrated EliteSiC SPM 31 IPM consists of an independent high side gate driver, low voltage integrated circuit (LVIC), six EliteSiC MOSFETs and a temperature sensor (voltage temperature sensor (VTS) or thermistor). The module is based on the industry-leading M3 SiC technology that shrinks die size and is optimized for hard-switching applications with improved short-circuit withstand time (SCWT) performance when used in the SPM 31 package, making them suitable for inverter motor drives for industrial use. The MOSFETs are configured in a three-phase bridge with separate source connections for the lower legs for maximum flexibility in the choice of control algorithm.
In addition, the EliteSiC SPM 31 IPMs include the following benefits:
- Low loss, short-circuit-rated M3 EliteSiC MOSFETs to prevent catastrophic equipment and component failures such as electric shock or fire.
- Built-in under-voltage protection (UVP) to protect against damage to the device when voltage is low.
- As the peer-to-peer product of FS7 IGBT SPM 31, customers can choose between various current ratings while using the same PCB board.
- UL certified to meet national and international safety standards
- Single-grounded power supply offering better safety, equipment protection and noise reduction.
- Simplified design and reduced size of customer boards due to
- Included controls for gate drivers and protections
- Built-in bootstrap diodes (BSDs) and resistors (BSRs)
- Internal boost diodes provided for high side gate boost drive
- Integrated temperature sensor (VTS output by LVIC and/or thermistor)
- Built-in high-speed high-voltage integrated circuit
Original – onsemi
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onsemi disclosed details of a proposal submitted to the Board of Directors of Allegro MicroSystems, Inc. to acquire the company for $35.10 per share in cash for each share of Allegro’s common stock on a fully diluted basis at an implied enterprise value of $6.9 billion.
onsemi has made numerous attempts over the past six months to enter into constructive discussions regarding a potential transaction. The most recent Proposal was submitted to Allegro on February 12, 2025, and represents an increase over an initial $34.50 per share proposal submitted on September 2, 2024.
“We believe the combination of onsemi and Allegro would bring two highly complementary businesses together, benefitting our respective customers and delivering immediate value to Allegro shareholders,” said Hassane El-Khoury, President and Chief Executive Officer of onsemi. “The Allegro team has built an impressive leadership position in magnetic sensing and power ICs for the automotive and industrial end-markets. Together, Allegro’s unique product portfolio and onsemi’s differentiated intelligent power and sensing technologies would create a diversified leader in automotive, industrial and AI data center applications.”
El-Khoury continued, “While we would have preferred to reach an agreement with Allegro privately, the decision to make our proposal public reflects our conviction in the merits of a combined company, which we believe is in the best interests of Allegro and onsemi shareholders. We urge the Allegro Board and management team to engage in good faith discussions with onsemi’s management team regarding the proposed transaction, which maximizes value for Allegro shareholders.”
The combination between onsemi and Allegro would create a natural strategic fit given both parties’ respective strengths within the automotive and industrial markets:
- Compelling Strategic Rationale That Delivers Benefits for Customers and Employees: Allegro’s product offering complements onsemi’s leadership in intelligent power and sensing for automotive, industrial and AI data center applications. A combination would bring together two strong teams with a shared culture of innovation and access to exciting new development opportunities within an expanded organization.
- Delivering Immediate and Certain Value for Allegro Shareholders: Under the terms of the Proposal, onsemi’s all-cash $35.10 per share offer represents a 57% premium to Allegro’s closing share price on February 28, 2025, the last trading day prior to media reports regarding onsemi’s interest in acquiring Allegro.
- Clear Path to Completion and Plan for Financing: onsemi has assembled a team of highly experienced advisors and is prepared to move swiftly and efficiently to complete due diligence and negotiate a mutually agreeable definitive agreement. The company does not anticipate any financing contingencies and intends to fund the potential transaction with a combination of committed financing, cash on hand, and funds available under its existing revolving credit facility.
onsemi first approached Allegro regarding a potential all-cash acquisition on September 2, 2024, via a formal letter with an initial all-cash $34.50 per share proposal. A follow-up letter was sent December 10, 2024, reaffirming onsemi’s desire to transact and gain access to find a pathway to diligence. Subsequently, onsemi made another attempt towards constructive engagement, most recently submitting a letter on February 12, 2025, improving its all-cash proposal to $35.10 per share, while also highlighting its numerous efforts to meaningfully engage with Allegro.
onsemi’s request since September 2, 2024, has been consistent: to advance the possibility of this valuable outcome for shareholders through rigorous management-to-management dialogue and pursuing the requisite diligence and scoping of regulatory requirements in order to expeditiously move towards finalization of a transaction.
Original – onsemi
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onsemi announced its fourth quarter and fiscal year 2024 results with the following highlights:
- Fourth quarter revenue of $1,722.5 million
- Fourth quarter GAAP gross margin and non-GAAP gross margin of 45.2% and 45.3%, respectively
- Fourth quarter GAAP operating margin and non-GAAP operating margin of 23.7% and 26.7%, respectively
- Fourth quarter GAAP diluted earnings per share of $0.88 and non-GAAP diluted earnings per share of $0.95, respectively
- Full year 2024 free cash flow of $1.2 billion, a 3X increase year-over-year
“As we continue to navigate this market downturn, our actions over the last four years have proven we are a structurally different company that is well-equipped to navigate prolonged volatility,” said Hassane El-Khoury, president and CEO, onsemi. “While 2025 remains uncertain, we remain committed to our long-term strategy. We will maintain our financial discipline, streamline our operations and continue to deliver high-value, differentiated intelligent power and sensing solutions that position onsemi to emerge even stronger.”
Original – onsemi
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onsemi announced that it has completed its acquisition of the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo for $115 million in cash.
The addition of SiC JFET technology will complement onsemi’s extensive EliteSiC power portfolio and enable the company to address the need for high energy efficiency and power density in the AC-DC stage in power supply units for AI data centers.
In electric vehicle applications, SiC JFETs help improve efficiency and safety by replacing multiple components with a solid-state switch based on SiC JFET in battery disconnect units. In the industrial end-market, SiC JFETs enable certain energy storage topologies and solid-state circuit breakers.
“This acquisition further strengthens onsemi’s leadership in power semiconductors by providing disruptive and market leading technologies to our customers to solve their most pressing power density and efficiency problems in AI data centers, automotive and industrial markets,” said Simon Keeton, group president and general manager of the Power Solutions Group, onsemi. “We will continue to innovate and make investments to expand our technology leadership in providing the most comprehensive power system solutions.”
Original – onsemi
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onsemi has unveiled plans to acquire Qorvo’s Silicon Carbide (SiC) JFET business, a strategic move that enhances its portfolio in high- and mid-voltage power semiconductors. The $115 million deal includes Qorvo’s United Silicon Carbide subsidiary and is expected to close in Q1 2025. This acquisition is projected to expand onsemi’s market opportunity by $1.3 billion by 2030, focusing on AI, data centers, EVs, and industrial markets. By leveraging its vertically integrated SiC supply chain, onsemi aims to boost efficiency, profitability, and innovation across key technology areas.
SiC JFET technology offers superior power efficiency, reduced costs, and versatility in advanced applications, including EV battery systems, AI-driven data centers, and renewable energy solutions. It promises to disrupt traditional silicon-based and GaN technologies, with its superior switching speed, lower on-resistance, and smaller die size. This acquisition positions onsemi to capitalize on the growing demand for sustainable, high-performance power solutions in a wide range of industries.
Moreover, SiC JFETs are designed to enable transformative advancements in industrial applications such as power supplies, solar power converters, and energy storage systems. These innovations align with market trends emphasizing higher efficiency and reliability. The technology also offers critical advantages in EV battery safety, ensuring quicker response and long-term dependability through solid-state switches that surpass conventional electromechanical solutions.
By integrating Qorvo’s business, onsemi also strengthens its presence in the competitive AI and data center markets. The shift to higher voltages and power capacities in these areas provides a unique opportunity for SiC JFETs to reduce costs and improve performance, establishing onsemi as a leader in next-generation semiconductor solutions.
Original – onsemi
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onsemi and Würth Elektronik announced the integration of Würth Elektronik’s passive components database into onsemi’s one-of-a-kind Self-Service PLECS® Model Generator (SSPMG). This intuitive web-based platform enables engineers to create custom high-accuracy, high-fidelity PLECS models of complex power electronic applications, which helps identify and fix performance bottlenecks early in the design process. With the addition of Würth Elektronik’s passive system components to SSPMG, the generated switching loss models achieve even higher precision than before.
Relying on laboratory configurations and environments, typical industry PLECS models don’t always reflect the wide range of conditions that component characteristics such as conduction, energy loss and thermal impedance display in practical implementations. In contrast, SSPMG’s capabilities are based on onsemi’s physically scalable SPICE (Simulation Program with Integrated Circuit Emphasis) models, which are rooted in semiconductor physics and the actual process variations in making the components, resulting in a more accurate representation of their behavior in the circuit.
“SSPMG empowers onsemi customers to autonomously generate system-level PLECS models that are tailored to their specific power application,” said James Victory Doctor of Philosophy, fellow, Modeling and Simulation Solutions, Power Solutions Group, onsemi. “Instead of going through long and costly fabrication-based cycles, customers develop and optimize their complete power systems virtually, enabling them to go to market faster.”
“With the seamless integration of Würth Elektronik’s database of SPICE models into onsemi’s SSPMG, design engineers can now select both the active onsemi components and the passive Würth Elektronik components for their application, generating a more accurate switching loss model,” said Dayana Cómbita, strategic partnership manager Europe, Würth Elektronik. “Together, we are paving the way to first-time-right, optimized system designs for our mutual customers.”
SSPMG loss models can be downloaded and then used on customers’ proprietary simulation platforms or uploaded into onsemi’s industry-leading Elite Power Simulator (EPS). EPS provides customers direct insights into how a circuit topology will perform across onsemi’s EliteSiC family of products, PowerTrench® T10 MOSFETs and Field Stop 7 (FS7) IGBTs and IPMs.
Original – onsemi
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onsemi announced its wafer fab in East Fishkill (EFK), New York, has been accredited by the Defense Microelectronics Activity (DMEA) of the U.S. Department of Defense (DoD) as a Category 1A Trusted Supplier. The accreditation enables onsemi to manufacture secure advanced semiconductors for a variety of critical aerospace and defense applications at the site. onsemi’s East Fishkill fab is the only 300 mm power discrete and image sensor fab in the U.S. and the company’s second accredited fab in addition to its Gresham, Oregon site.
“Power and sensing technologies are vital in modern defense systems, providing the reliable energy and data required for robust, intelligent and efficient operations,” said Sudhir Gopalswamy, group president Intelligent Sensing and Analog and Mixed-Signal Groups of onsemi. “With this accreditation, onsemi is now positioned to offer our industry-leading power and sensing technologies through our secure and trusted manufacturing facilities that will enable the DoD to have the reliable and cutting-edge solutions they need.”
Achieving the trusted foundry accreditation is a rigorous process that ensures a supplier meets comprehensive security and operational criteria, including the protection of mission-critical functions for trusted systems and networks. This thorough approach safeguards the integrity and confidentiality of onsemi’s industry-leading intelligent power and sensing technologies. As a trusted supplier, onsemi is able to provide custom-designed, custom-manufactured or tailored power and sensing solutions for specific DoD applications.
Original – onsemi
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onsemi announced results for the third quarter of 2024 with the following highlights:
- Revenue of $1,761.9 million
- GAAP gross margin and non-GAAP gross margin of 45.4% and 45.5%, respectively
- GAAP operating margin and non-GAAP operating margin of 25.3% and 28.2%, respectively
- GAAP diluted earnings per share and non-GAAP diluted earnings per share of $0.93 and $0.99, respectively
- Returned 75% of free cash flow over the last 12 months to shareholders through stock repurchases
“With third-quarter results above expectations, we remain focused on delivering consistent results in the current environment through execution and prudent financial management,” said Hassane El-Khoury, president and CEO, onsemi.
“As power demands continue to rise across our key markets, and the need for greater efficiency becomes paramount, we are investing to win across the entire power spectrum to ensure that onsemi is best positioned to gain share in automotive, industrial and AI data center.”
Original – onsemi
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onsemi released the newest generation silicon and silicon carbide hybrid Power Integrated Modules (PIMs) in an F5BP package, ideally suited to boost the power output of utility-scale solar string inverters or energy storage system (ESS) applications. Compared to previous generations, the modules offer increased power density and higher efficiencies within the same footprint to increase the total system power of a solar inverter from 300kW up to 350kW.
This means a one-gigawatt (GW) capacity utility-scale solar farm using the latest generation modules can achieve an energy savings of nearly two megawatts (MW) per hour or the equivalent of powering more than 700 homes per year. Additionally, fewer modules are required to achieve the same power threshold as the previous generation, which can reduce power device component costs by more than 25%.
With solar power having achieved the lowest levelized cost of energy (LCOE), it is increasingly becoming the go-to source for renewable power generation around the world. To compensate for solar power’s variability, utility operators are also adding large-scale battery energy storage systems (BESS) to ensure a stable energy flow to the grid. To support this combination of systems, manufacturers and utilities require solutions that offer maximum efficiency and reliable power conversion. Every 0.1% of efficiency improvement can equate to a quarter of a million dollars in annual operational savings for every one gigawatt of installed capacity.
“As a variable energy source dependent on sunlight, continual advances in increasing system efficiencies, reliability and advanced storage solutions are needed to be able to maintain the stability and reliability of global grids during peak and off-peak power demand,” said Sravan Vanaparthy, vice president, Industrial Power Division, Power Solutions Group, onsemi. “A more efficient infrastructure increases adoption and assures us that, as more solar power generation is built out, less energy is wasted and pushes us forward on a path away from fossil fuels.”
The F5BP-PIMs are integrated with 1050V FS7 IGBT and the 1200V D3 EliteSiC diode to form a foundation that facilitates high voltage and high current power conversion while reducing power dissipation and increasing reliability. The FS7 IGBTs offer low turn-off losses and reduce switching losses by up to 8%, while the EliteSiC diodes provide superior switching performance and lower voltage flicker by 15% compared to previous generations.
These PIMs employ an innovative I-type Neutral Point Clamp (INPC) for the inverter module and a flying capacitor topology for the boost module. The modules also use an optimized electrical layout and advanced Direct Bonded Copper (DBC) substrates to reduce stray inductance and thermal resistance. In addition, a copper baseplate further decreases thermal resistance to the heat sink by 9.3%, ensuring the module remains cool under high operational loads. This thermal management is crucial in maintaining the efficiency and longevity of the modules, making them highly effective for demanding applications that require reliable and sustained power delivery.
Original – onsemi
