onsemi doubles share repurchase program to $6 billion

SCOTTSDALE, Ariz. - Semiconductor manufacturer onsemi (NASDAQ:ON) announced Tuesday that its Board of Directors has authorized a new $6 billion share repurchase program spanning three years, doubling its previous $3 billion authorization. The buyback represents about one-third of the company's current market capitalization of $18.34 billion, according to InvestingPro data.

The new program will commence on January 1, 2026, after the current authorization expires on December 31, 2025. Under the existing program, the company has repurchased $2.1 billion of its common stock over the past three years, including approximately 100% of its free cash flow in 2025 for share repurchases. This aligns with what InvestingPro identifies as a key company characteristic: management has been aggressively buying back shares.

"Doubling our share repurchase authorization demonstrates our commitment to disciplined capital management and creating long-term shareholder value," said Thad Trent, Executive Vice President and CFO of onsemi. The company maintains a strong liquidity position with a current ratio of 5.23, meaning its liquid assets substantially exceed short-term obligations, while operating with a moderate debt level.

The company may repurchase shares through open market purchases, privately negotiated transactions, or other means, including trading plans under Rule 10b5-1. The timing and amount of repurchases will depend on market conditions, regulatory requirements, stock prices, and other factors. With onsemi shares trading at $45.56, down about 27% year-to-date, the company appears undervalued according to InvestingPro Fair Value estimates.

The new authorization will expire on December 31, 2028, and can be suspended or discontinued at any time. The program does not obligate the company to acquire any specific amount of its common stock.

Hassane El-Khoury, President and CEO of onsemi, stated that the increased program reflects confidence in the company's long-term strategy as it continues to invest in power and sensing technologies across automotive, industrial, and AI data center markets.

The announcement comes as onsemi maintains focus on vehicle electrification, sustainable energy grids, industrial automation, and cloud infrastructure technologies, according to the company's press release statement.

In other recent news, ON Semiconductor Corporation announced it will record pre-tax non-cash impairment and accelerated depreciation charges between $200 million and $300 million. These charges are part of the company's restructuring and cost reduction initiatives to better align its manufacturing capabilities with long-term needs. Additionally, Piper Sandler has lowered its price target for ON Semiconductor to $55, citing lower multiples across the industry, while maintaining an Overweight rating. In another development, Alan Campbell, chair of ON Semiconductor's board, plans to retire after the 2026 annual meeting. Meanwhile, PHP Ventures Acquisition Corp. has deposited funds to extend its deadline for completing an initial business combination to December 16, 2025. This extension provides PHP Ventures more time to explore potential business combinations. Ascendis Pharma A/S has granted 41,220 warrants to employees, allowing them to subscribe to ordinary shares at $201.16 per share. The warrants will vest over a four-year period, contingent on continued employment, with potential for earlier vesting under certain conditions.

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