The automotive chip market is facing major changes. On-vehicle CIS (CMOS image sensor) giant ON Semiconductor has announced its intention to acquire sensor leader Allegro Microsystems.
Allegro is a company specializing in magnetic sensors and related integrated circuits. Its technical advantages are mainly reflected in its Hall effect sensor and magnetic switch technology, which has a leading position. These technologies are widely used in automotive engines, safety systems, automatic driving assistance systems (ADAS), electric vehicles (EV) and hybrid electric vehicles (HEV) and other fields, especially in motor control, current detection and position sensing and other automotive applications. According to media reports, ON Semiconductor has hired a team of professional consultants to promote the acquisition of Allegro.
Allegro's performance in the market has been up and down in recent years. Due to weak industry demand and inventory squeeze, Allegro's revenue and profits have declined in 2024.
ON Semiconductor is a major supplier of automotive CIS and power semiconductors, especially in the automotive CIS market, where it dominates with a market share of up to 50%. In the CIS segment of electric vehicle advanced driver assistance systems (ADAS), its share reaches 68%.
With the rapid development of electric vehicles and intelligent driving technology, competition in the automotive chip market is becoming increasingly fierce. Through the acquisition of Allegro, ON Semiconductor is expected to further expand its sensor product line, not only to obtain its technology and customer resources in the field of magnetic sensors, but also to significantly enhance its vertical integration competitiveness in the automotive and industrial markets.