ON Semiconductor shares plunge 21% after $7 billion Synaptics deal

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ON Semiconductor shares fell roughly 21% on Friday, their worst single-day loss since 2020, after the chipmaker announced its largest-ever acquisition, a $7 billion all-stock deal for Synaptics. The transaction values Synaptics at a 19% premium based on recent average prices, with Synaptics shareholders set to own about 12% of the combined company, diluting existing ON Semiconductor investors. CEO Hassane El-Khoury framed the move as an entry into physical AI, combining ON Semiconductor's power and sensing hardware with Synaptics' edge AI and wireless connectivity to target a $243 billion addressable market by 2030. The company projects roughly $200 million in annual cost savings, but analysts caution that meaningful earnings benefits may not materialize until 2028 or 2029, well after the expected mid-2027 closing. Synaptics shares gained about 3% on the day.

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ON Semiconductor Corporation
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ON Semiconductor announces $7B all-stock acquisition of Synaptics, diluting existing shareholders and raising concerns about delayed earnings benefits.

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