onsemi Announces Major Share Repurchase Program
onsemi (Nasdaq: ON) has unveiled an impressive new initiative where its Board of Directors has authorized a share repurchase program totaling up to $6 billion. This ambitious program is set to roll out on January 1, 2026, marking a significant commitment to enhance shareholder value and confidence.
Significance of the $6 Billion Repurchase Program
This newly announced program is a strategic sequel to the previous $3 billion authorization that will conclude on December 31, 2025. Within the last three years, under the existing authorization, onsemi successfully repurchased $2.1 billion of its common stock. Notably, in 2025, the company devoted nearly all of its free cash flow to enhance its stock value through buybacks.
Leadership Insights on Shareholder Value
Thad Trent, Executive Vice President and CFO of onsemi, expressed that this decision underscores the company’s dedication to sensible capital management while simultaneously aiming to bolster long-term shareholder value. Trent highlighted that the company’s robust balance sheet and its steady cash generation capacity empower it to return capital while continuing investment in growth-oriented initiatives.
Strategic Investments and Growth Opportunities
Moreover, Hassane El-Khoury, President and CEO of onsemi, remarked that the enlarged share repurchase initiative reflects the strong confidence in their long-term strategic vision. The company is poised to drive investments in groundbreaking technologies within power and sensing systems, focusing on areas that will play pivotal roles in shaping the future of intelligent, energy-efficient solutions. This foresight enables onsemi to capitalize on growth prospects in crucial markets such as automotive, industrial applications, and AI-driven data centers.
Flexible Repurchase Framework
Under the new framework, the company will have the flexibility to repurchase shares periodically through various avenues, including open market transactions and privately negotiated deals. These actions will adhere to Rule 10b5-1 of the Securities Exchange Act of 1934 and are subject to applicable securities laws and regulations. The timing and scope of these purchases will be influenced by overall economic conditions, stock prices, and other corporate factors. The share repurchase authorization is set to run until December 31, 2028, presenting onsemi with a well-defined timeline to execute its strategic buyback operations.
About onsemi
onsemi is at the forefront of technological advancements that are aligned with essential market trends such as vehicle electrification, sustainable energy solutions, and industrial automation. The company’s innovative approach is evident across its diverse range of products, which include advanced power and sensing technologies designed to tackle some of the most pressing global challenges. onsemi continues to shape a future that is safer, cleaner, and smarter, confirming its place in both the Nasdaq-100 Index and the S&P 500 index.
Contact Information
For immediate inquiries, please reach out to:
Krystal Heaton
Director, Head of Public Relations
onsemi
(480) 242-6943
Krystal.heaton@onsemi.com
Parag Agarwal
Vice President - Investor Relations & Corporate Development
onsemi
(602) 244-3437
investor@onsemi.com
Frequently Asked Questions
What is the amount allocated for the new share repurchase program?
The new share repurchase program is authorized for up to $6 billion.
When does the new share repurchase program begin?
The program is set to commence on January 1, 2026, following the expiration of the earlier $3 billion authorization.
What are the key areas of investment for onsemi?
onsemi is focusing on areas such as automotive, industrial applications, and AI data centers, investing in power and sensing technologies.
How much did onsemi repurchase under the previous program?
Under the prior authorization, onsemi repurchased $2.1 billion of its common stock.
What does the flexibility in the repurchase program allow onsemi?
The flexibility enables onsemi to buy back shares via various methods based on market conditions and corporate strategies, adhering to legal regulations.
