onsemi (ON) Stock Gains on SWIR Vision Systems Acquisition

onsemi (NASDAQ: ON) announced on July 2, 2024, the completion of its acquisition of SWIR Vision Systems, a leading provider of colloidal quantum-dot-based (CQD) short wavelength infrared (SWIR) technology. The acquisition marks a significant step in onsemi’s strategy to enhance its intelligent sensing product portfolio and expand its presence in key markets such as industrial, automotive, and defense.

SWIR Vision Systems’ Patented Tech Can Supercharge onsemi CMOS Sensors

The integration of SWIR Vision Systems’ patented CQD technology with onsemi’s industry-leading CMOS sensors is expected to revolutionize imaging capabilities. CQD technology extends the detectable light spectrum, enabling imaging through objects not possible previously. This breakthrough has wide-ranging applications, including surveillance systems, silicon inspection, machine vision imaging, food inspection, and autonomous vehicle imaging in extreme conditions.

onsemi aims to leverage its silicon-based CMOS sensors and manufacturing expertise alongside CQD technology to produce highly integrated SWIR sensors at lower costs and higher volumes. This combination is anticipated to result in more compact and cost-effective imaging systems, potentially opening up new market opportunities and applications.

onsemi’s Stock Gains on SWIR Vision System Acquisition News

While the acquisition is not expected to significantly impact on semi’s near-to-midterm financial outlook, it has already had a positive effect on the company’s stock performance.

On the day of the announcement, onsemi’s stock (ON) closed at $72.92, up 5.41% or $3.74. The company’s market capitalization stood at $31.37 billion, with a trailing twelve-month P/E ratio of 14.88 and earnings per share of $4.90.

SWIR Vision Systems will now operate as a wholly owned subsidiary of onsemi, with its team integrated into onsemi’s Intelligent Sensing Group. The acquired team will continue to operate from their existing location in North Carolina, ensuring continuity and leveraging their expertise in the field.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

About the author

Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim serves as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.