ON Semiconductor announced plans to acquire Synaptics in an all-stock deal, which has led to a significant drop in its stock price. The acquisition is intended to expand ON Semiconductor's addressable market by an additional $30 billion, reaching a total of $243 billion by 2030.
CEO Hassane El-Khoury highlighted that this move is complementary to the company's existing operations and will open new markets, particularly in AI-driven technologies such as autonomous vehicles and robotics. He noted that Synaptics' Astra platform will enhance ON Semiconductor's Edge AI capabilities, which involve running AI locally on hardware.
El-Khoury reassured investors about the strength of the company's core business and its data center operations, which are reportedly accelerating. The acquisition is expected to close by mid-2027 and generate $200 million in annual synergies within 18 months