In June 2024, US semiconductor giant Onsemi officially withdrew its $6.9 billion acquisition proposal for Allegro MicroSystems $ALGM, its smaller competitor. The move concluded months of intense negotiations and placed a spotlight on the evolving strategies within America's high-tech sector, particularly as companies reposition themselves amidst shifting economic cycles and rapid advances in automotive technology.
ON Semiconductor Corp., better known as Onsemi, made headlines with its announcement of a $6.9 billion unsolicited bid for Allegro Microsystems Inc., which includes debt in the offer. Onsemi is offering Allegro shareholders $35.10 per share, up from a prior proposal of $34.50 made in September. This increase indicates Onsemi's commitment to acquiring Allegro, a significant player in the semiconductor industry.
Recent developments underscore an active phase in the semiconductor sector. Allegro Microsystems $ALGM, a prominent supplier of integrated circuits for sensors, has attracted significant attention from its larger competitor, ON Semiconductor $ON. This news highlights the critical role of integrated circuits, particularly in the automotive industry, and signals potential shifts in market dynamics.
