Topic: How To Invest

Pat: What is your opinion on ON Semiconductor Corp.?

Article Excerpt

ON Semiconductor Corp., $9.26, symbol ONNN on Nasdaq (Shares outstanding: 441.0 million; Market cap: $3.9 billion; www.onsemi.com), designs and makes energy-efficient chips for electronic devices, including computers, video game systems, TVs, music players and smartphones. It also makes chips for automobile emission control, interior lighting and safety equipment, such as air bags. Automotive customers supply 30% of ON Semiconductor’s sales, followed by industrial/military users (21%), communication equipment makers (17%), consumer product companies (17%) and computer makers (15%). Customers in Japan and other parts of Asia account for 70% of sales. The company has a long history of expanding by acquisition. For example, in January 2011 it paid $479.9 million for the chip making operations of Japan’s Sanyo Electric. The purchase gave the company access to Sanyo’s many customers in Asia, as well as the opportunity to sell them a wider variety of chips. Earlier this year, ON Semiconductor acquired Truesense Imaging for $95 million. Truesense produces image sensors for makers of medical scanners and…