On Semiconductor

ON Semiconductor’s CEO defended a major acquisition of Synaptics, aiming to capitalize on a projected $30 billion “physical AI” market. Despite investor skepticism and a stock sell-off, the company believes the deal will expand its addressable market to $243 billion by 2030, enhancing its edge AI capabilities for applications like autonomous vehicles and robotics. The CEO emphasized the strong complementary nature of the businesses and the continued robust performance of its core operations.

On Semiconductor is acquiring Synaptics for $7 billion in an all-stock deal to accelerate its “physical artificial intelligence” strategy. This acquisition aims to significantly expand On Semiconductor’s addressable market and bolster its intelligent systems portfolio by integrating Synaptics’ edge AI and HMI technologies. The deal, expected to close by mid-2027, signifies a broader industry trend of consolidation in AI.