OnSemi mulls takeover bid for Allegro Microsystems, says report
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Struggling power and sensor chip company On Semiconductor Corp. (Scottsdale, Ariz.) is considering making a bid for its smaller competitor Allegro Microsystems Inc. (Manchester, New Hampshire, according to a Bloomberg report.
Allegro recently appointed Michael Doogue as CEO, replacing Vineet Nargolwala, and it is unclear whether the company would welcome a takeover bid. Interest from OnSemi could prompt approaches from other companies, the report said. Doogue spent 27 years rising through the ranks at Allegro; first as an engineer then as an executive. Prior to his appointment as CEO he served the company as CTO.
Allegro has a market capitalization of about US$4.1 billion while OnSemi’s market cap is about US$19.8 billion.
OnSemi, like many other companies, is struggling due to market exposure to market sectors such as automotive and industrial that are providing low demand. This could led to consolidation amongst major and minor semiconductor companies servicing these markets.
OnSemi recently announced a company-wide restructuring plan that is expected to cut about 2,400 jobs during 2025.
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