Onsemi beats second-quarter results estimates on steady auto chip demand

(Reuters) - Onsemi marginally beat Wall Street expectations for second-quarter revenue and profit on Monday, helped by resilient demand for its automotive chips in an uncertain market, sending its shares up 10% in premarket trading.

After a long period of weak demand for automotive semiconductors, carmakers are clearing existing chip inventories - which they had built up during the pandemic - to avoid a supply crunch, benefiting companies such as Onsemi.

The chipmaker's revenue forecast however, was mostly below analysts' expectations, casting doubt over the future of the automotive chips market as consumers have been curbing spending on costlier electric cars, opting for cheaper hybrid alternatives instead.

By Reuters.
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