ON Semiconductor (ON) Announces New $1.5 Billion Share Repurchase Program

ON Semiconductor (NASDAQ: ON), driving energy efficient innovations, today announced that its Board of Directors has approved a new share repurchase program. Under the new share repurchase program, the company intends to repurchase up to $1.5 billion of its common stock over a four-year period. The new stock repurchase program is effective December 1, 2018, coinciding with the expiration of the $1.0 billion share repurchase program announced in December 2014, and is designed to maximize capital efficiency by returning excess capital to ON Semiconductor’s shareholders.

“With strong momentum in industrial, automotive, and cloud power markets, ON Semiconductor is positioned to deliver results over the next four years that we expect will allow us to continue to invest in the business and return capital to shareholders, consistent with our existing capital allocation policy,” said Keith Jackson, president and CEO of ON Semiconductor. “Our new share repurchase program reflects our belief in the long-term free cash flow generation ability of our business, and we expect that the new program will deliver substantial value to our shareholders.”

Prior to the expiration of the 2014 share repurchase program, ON Semiconductor purchased approximately $712 million of the $1.0 billion authorized under the 2014 program, including the repurchase of 11.5 million shares for $200 million completed in the fourth quarter of 2018.

Share repurchases may be made from time to time through a variety of methods, including open market or privately negotiated transactions. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including our stock price, corporate and regulatory requirements, restrictions under our debt obligations, and other market and economic conditions. The share repurchase program does not obligate us to purchase any particular amount of common stock, is subject to a variety of factors including the Board’s discretion, and may be suspended or discontinued at any time.

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