ON Semiconductor (NASDAQ:ON) agreed to acquire Aura Semiconductor’s Vcore power technologies and related intellectual property (IP) licenses, strengthening its push into artificial intelligence data center power management.
The financial terms of the deal remained undisclosed.
The deal expands ON Semiconductor’s portfolio and supports its strategy to deliver end-to-end power solutions, from grid-level supply to core processing, for increasingly power-hungry AI infrastructure.
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Sudhir Gopalswamy, president of ON Semiconductor’s Intelligent Sensing and Analog and Mixed-Signal Group, said integrating Aura’s technology will boost power density, efficiency, and thermal performance, enabling higher compute capacity per rack.
ON Semiconductor, known for its silicon and silicon carbide (SiC) power devices, provides solutions spanning solid-state transformers, power supply units, and high-voltage distribution.
The acquisition renders ON Semiconductor capable of addressing modern AI data center requirements at scale.
The deal will likely close in the fourth quarter of 2025 with minimal near-term earnings impact and accretion thereafter, pending customary approvals.
ON Semiconductor held $2.83 billion in cash and equivalents as of June 30, 2025.
ON Semiconductor plunged over 18% year-to-date, lagging the PHLX Semiconductor index’s over 27% returns. The company failed to reach its adjusted EPS estimates in at least two of the last three quarters and revenue consensus estimates in at least one quarter. The company’s revenue and adjusted EPS have declined double-digits in the previous three quarters.
After ON Semiconductor’s second-quarter results, CEO Hassane El-Khoury noted early signs of stabilization in its key markets and noted that the company stands ready to benefit from a recovery.
He emphasized that while ON Semiconductor pursues near-term priorities, it continues to invest in next-generation technologies to fuel growth and reinforce its leadership position.
As part of that strategy, ON Semiconductor revealed that Xiaomi’s YU7 electric SUV models now use its advanced 800V drive platform, which is built on EliteSiC M3e technology.
For the third quarter, ON Semiconductor forecasted adjusted revenue between $1.465 billion and $1.565 billion, compared with analysts’ consensus of $1.490 billion. It projects adjusted EPS of 54 cents to 64 cents, versus expectations of 58 cents, and an adjusted gross margin of 36.5% to 38.5%.
Price Action: ON stock was trading higher by 0.39% to $51.70 premarket at last check Tuesday.
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