M
ME NEWS
19 Mar 2025, 07:04
ON Semiconductor Announces $600M-$700M Asset Impairment Amid Restructuring
Scottsdale, AZ – March 17, 2025 – ON Semiconductor Corporation (NASDAQ: ON) has announced plans to recognize pre-tax non-cash impairment charges of approximately $600 million to $700 million as part of its previously disclosed restructuring and cost-reduction initiatives.
Key Details:
Impairment Scope: Charges relate to long-lived assets and manufacturing equipment at certain facilities under held-for-sale accounting guidance.
Strategic Purpose: The move is part of onsemi's efforts to realign its manufacturing technologies and capacity with long-term operational needs.
Financial Impact:
The charges are expected to reduce depreciation expenses by $30 million to $35 million in 2025.
The majority of these charges will be incurred in the first half of 2025.
The company does not anticipate significant future cash expenditures related to these impairments.
Forward-Looking Statements:
ON Semiconductor cautioned that actual impairment amounts, asset dispositions, and financial impacts may differ due to valuation uncertainties.
This announcement aligns with onsemi’s broader transformation strategy, aimed at optimizing its manufacturing footprint and focusing on key growth areas such as automotive and industrial applications.
Scottsdale, AZ – March 17, 2025 – ON Semiconductor Corporation (NASDAQ: ON) has announced plans to recognize pre-tax non-cash impairment charges of approximately $600 million to $700 million as part of its previously disclosed restructuring and cost-reduction initiatives.
Key Details:
Impairment Scope: Charges relate to long-lived assets and manufacturing equipment at certain facilities under held-for-sale accounting guidance.
Strategic Purpose: The move is part of onsemi's efforts to realign its manufacturing technologies and capacity with long-term operational needs.
Financial Impact:
The charges are expected to reduce depreciation expenses by $30 million to $35 million in 2025.
The majority of these charges will be incurred in the first half of 2025.
The company does not anticipate significant future cash expenditures related to these impairments.
Forward-Looking Statements:
ON Semiconductor cautioned that actual impairment amounts, asset dispositions, and financial impacts may differ due to valuation uncertainties.
This announcement aligns with onsemi’s broader transformation strategy, aimed at optimizing its manufacturing footprint and focusing on key growth areas such as automotive and industrial applications.