Recently, onsemi, a global leader in power and sensing technologies, announced that its board of directors has authorized a new stock repurchase plan with a scale of up to $6 billion, effective from January 1, 2026, to December 31, 2028. This plan replaces the previous $3 billion stock repurchase authorization that will expire on December 31, 2025. Under the previous authorization, onsemi has repurchased $2.1 billion of common stock over the past three years. In 2025 alone, onsemi allocated approximately 100% of its free cash flow to stock repurchases, highlighting its determination to enhance shareholder returns through capital allocation.

Details of the Repurchase Plan

Under the new stock repurchase plan, onsemi may repurchase its common stock from time to time through open market transactions, privately negotiated transactions, or other means, including through a trading plan in compliance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to applicable securities laws and other restrictions. The timing and amount of stock repurchases will depend on business, economic, and market conditions, corporate and regulatory requirements, prevailing market prices, and other considerations. This repurchase authorization will expire on December 31, 2028. The company may suspend or terminate the program at any time and is not legally obligated to repurchase any specific amount of common stock.

Onsemi Background

Onsemi is committed to driving disruptive innovation to create a better future. The company focuses on the major trends in the automotive and industrial end markets, accelerating the transformation and innovation in sub-sectors such as automotive functional electrification, automotive safety, sustainable grids, industrial automation, and 5G and cloud infrastructure. Onsemi's investments in differentiated power management and intelligent sensing technologies, such as silicon carbide (SiC), image sensors, and intelligent power modules, have become key enablers for electric vehicles, industrial automation, and AI infrastructure.

Future Outlook

Amid the cyclical adjustments in the global semiconductor industry, onsemi's $6 billion stock repurchase plan not only strengthens investor confidence but also highlights its successful transformation from a "cyclical component supplier" to a "high-barrier system-level technology partner." This significant capital move sends a strong signal that the company is not only financially sound but also highly confident in its long-term strategy in high-growth tracks. With the acceleration of the global electrification and intelligence wave, the demand for onsemi's solutions in areas such as 800V electric drive systems, ADAS vision schemes, and efficient data center power continues to rise. The large-scale production of its SiC devices on platforms like Tesla and Hyundai, as well as the widespread application of image sensors in L2+ and above autonomous driving systems, have laid a solid foundation for the company's future growth.

The announcement of onsemi's $6 billion stock repurchase plan is not only a reflection of its financial strength but also a strong endorsement of the certainty of future growth. Through continuous investment and innovation, onsemi is moving towards becoming a leader in the field of intelligent power and sensing technologies, creating long-term value for shareholders while contributing to global sustainable development.

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