ON Semiconductor Reports Record Revenue, Catches Up To Microchip Demand
ON Semiconductor Corporation announced results for the first quarter of 2021 on Monday.
The quarterly numbers showed a 16% increase in revenue year over year and record automotive revenue of $515 million. The announcement is a victory for the microchip maker, after suffering pandemic-related losses last summer that included two rounds of layoffs.
As vaccinations increase and people return to work and travel, demand for cars is also returning — and the component parts that go in them. ON executives said at the announcement they expect microchip sales to accelerate even more as the industry catches up to the already high demand for smartphone chips — and a worldwide shortage in supply.
In the Monday announcement, executives said "the company has been working on internal operations even while external demand factors drive business and add to earnings leverage. The company reports not only a strong quarter but one in which earnings grew by triple digits and sequential improvement at all levels was forecast for the next."
ON Semiconductor was spun off from Motorola in 1999.