Onsemi on Monday projected second-quarter revenue above Wall Street estimates, citing continued strength in demand for its silicon carbide chips used in electric vehicles (EVs), despite new U.S. tariffs that threaten to disrupt the automotive sector.
The company forecast revenue between $1.40 billion and $1.50 billion for the quarter, with the midpoint exceeding analystsâ average estimate of $1.42 billion, according to LSEG data. Adjusted earnings per share are expected to fall between 48 cents and 58 cents, compared with market expectations of 52 cents.
Onsemi reported first-quarter revenue of $1.45 billion, beating expectations of $1.40 billion but marking a 22% decline from a year earlier.
The chipmaker said demand was bolstered by EV sales growth in China and Europe during the first quarter, cushioning the impact of a 25% tariff on auto imports enacted by U.S. President Donald Trump on April 3. The duties could drive vehicle prices higher by thousands of dollars and trigger supply chain disruptions, prompting some automakers to withdraw their financial forecasts.
Onsemi is among a select group of suppliers producing silicon carbide chips, which help increase EV range â a critical feature in a competitive market.
Despite positive demand trends, the company has faced recent strategic challenges. In February, it announced plans to cut about 2,400 jobs globally in 2025. Last month, Onsemi also withdrew its $6.9 billion acquisition bid for Allegro MicroSystems (ALGM.O), citing a lack of engagement from Allegroâs board.
While trade tensions cast a shadow over the auto industry, Onsemi remains optimistic about long-term demand.