> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Onsemi CEO Rejects 'De-Emphasizing' Auto Label, Blames Supply Shift To AI As Auto Revenue Slips - URL: https://www.bullished.co/onsemi-ceo-rejects-de-emphasizing-auto-label-blames-supply-shift-to-ai-as-auto-revenue-e43caa6d/ - Published: 2026-11-02T23:16:06.000Z - Updated: 2026-11-02T23:16:06.000Z - Description: Onsemi expects fourth-quarter automotive revenue to fall by a high single-digit percentage as chips go to AI data center and industrial buyers. - Author: Matteo Parrino - Tags: Earnings, ON, Industry: Technology Onsemi, which makes power and sensing chips for cars, factories and AI data centers, expects automotive revenue to fall by a high single-digit percentage in the fourth quarter, CFO Thad Trent said on the company's [third-quarter earnings call](https://seekingalpha.com/news/4662213-on-semiconductor-sinks-on-q3-results-guidance-announces-600m-deal-for-ferric?ref=bullished.co) on Monday. CEO Hassane El-Khoury, on the same call, rejected an analyst's suggestion that the company is pulling back from cars. ## "Not de-emphasizing" autos A Bank of America analyst asked whether underserving the auto market would cost onsemi share. El-Khoury first corrected the wording: "We're not de-emphasizing the automotive market." He called the cutback "supply-driven, not strategically driven" and said onsemi is not losing share. Onsemi is covering all of its automaker customers' end demand, he said, but not their inventory replenishment. "It is purely a replenishment, not an end demand, and it's short-term in nature," he said. Shipments resume in the first quarter, and he expects 2027 auto growth to match the company's long-term target. Automotive revenue was $777 million in the third quarter, down 1% from the prior quarter and the prior year, Trent said, mainly because supply was reallocated to AI data center and industrial customers. ## Why the chips went elsewhere Industrial and AI data center results beat onsemi's own guidance, El-Khoury said, so the company shifted its mix in the short term. Third-quarter revenue was $1.72 billion, up 7% sequentially and 11% from a year earlier. AI data center revenue was $180 million, up 39% sequentially, and the company now expects about $620 million for 2026\. Industrial revenue was $467 million. Trent said the output now leaving the fabs reflects utilization two quarters ago, when it was 77%. Utilization was 83% last quarter and is expected to stay there in the fourth quarter, so the supply shortfall is a catch-up, he said. Capacity is already in place, and Trent said he does not expect to come near capping out in 2027. ## A $600 million AI bet Onsemi also announced the purchase of Ferric, a maker of integrated voltage regulators for AI processors, for $600 million plus up to $175 million in earnouts tied to revenue milestones. Trent said it should close in the fourth quarter. The company raised its 2030 AI data center revenue target by $500 million to more than $3 billion, an increase El-Khoury said is tied to the acquisition. Trent said 2027 capital spending should be about 5% of revenue, against about 2% this year. After closing the pending Synaptics acquisition, paying down debt will be the top priority, he said, with share buybacks opportunistic. Management guided fourth-quarter revenue of $1.715 billion to $1.815 billion, and says automotive shipments return to normal levels in the first quarter. Learn - [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/) How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording. ### Sources - [ON Semiconductor sinks on Q3 results, guidance; announces $600M deal for Ferric (ON:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4662213-on-semiconductor-sinks-on-q3-results-guidance-announces-600m-deal-for-ferric?ref=bullished.co) — seekingalpha.com - [ON Semiconductor Corp. (ON) Q3 Earnings and Revenues Top Estimates](https://finance.yahoo.com/markets/stocks/articles/semiconductor-corp-q3-earnings-revenues-212503953.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [ON Semiconductor Non-GAAP EPS of $0.90 beats by $0.02, revenue of $1.72B beats by $10M (ON:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4662914-on-semiconductor-non-gaap-eps-of-0%5F90-beats-by-0%5F02-revenue-of-1%5F72b-beats-by-10m?ref=bullished.co) — seekingalpha.com - [ON Semiconductor Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call](https://www.benzinga.com/analyst-stock-ratings/price-target/26/11/62767518/on-semiconductor-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call-3?ref=bullished.co) — benzinga.com - [Onsemi to Report Q3 Earnings: What's in Store for the Stock?](https://finance.yahoo.com/markets/stocks/articles/onsemi-report-q3-earnings-whats-163400882.html?ref=bullished.co) — Yahoo Finance ### More on ON Semiconductor - [Onsemi Now Plans To Pay Cash For Synaptics, With Up To $2,450.0 Million In New Term Loans](https://www.bullished.co/onsemi-now-plans-to-pay-cash-for-synaptics-with-up-to-2-450-0-million-in-new-term-loans-79584040/) - [Onsemi Agrees To Pay $600 Million Cash For Ferric, Raises 2030 AI Data Center Target](https://www.bullished.co/onsemi-agrees-to-pay-600-million-cash-for-ferric-raises-2030-ai-data-center-target-6756379e/) - [Onsemi Adjusted EPS Climbs To $0.90 From $0.63 As AI Data Center Revenue Grows 175%](https://www.bullished.co/onsemi-adjusted-eps-climbs-to-0-90-from-0-63-as-ai-data-center-revenue-grows-175-2141084a/) [All ON Semiconductor (ON) coverage →](https://www.bullished.co/tag/on/)