On Semiconductor tumbles after Synaptics deal to push into physical AI

ON Semiconductor’s stock dropped about 24% after announcing its largest acquisition ever: an all-stock deal to buy Synaptics to expand into edge and physical AI with Synaptics’ Astra platform. The move would broaden its addressable market by roughly $30 billion to about $243 billion by 2030 and establish a new AI compute platform for edge devices and autonomous systems. Management says there is no product overlap and the core business remains strong; the deal is expected to close in mid-2027 with around $200 million in annual synergies within 18 months of close. The company also noted its data center business is performing well.