(Reuters) – Onsemi forecast first-quarter revenue below Wall Street expectations on Monday, hit by softer demand for its automotive chips as customers cut back on orders owing to economic uncertainty, sending its shares down 9% in premarket trading.
The company expects first-quarter revenue between $1.35 billion and $1.45 billion, compared with analysts’ estimates of $1.69 billion, according to data compiled by LSEG.
Onsemi’s forecast signals that the automotive chip market is still sluggish, with many customers holding off on placing new orders for its silicon carbide chips owing to soft demand for battery-powered cars.
“While 2025 remains uncertain, we remain committed to our long-term strategy,” said Onsemi CEO Hassane El-Khoury.
The company reported fourth-quarter revenue of $1.72 billion, missing estimates of $1.76 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)
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