New York, Jan 19, 2026, 20:41 EST — Market closed.
ON Semiconductor Corp shares ended Friday up roughly 0.1%, closing at $60.33, ahead of the U.S. market holiday Monday for Martin Luther King Jr. Day. Chip stocks showed strength heading into the break, with the iShares Semiconductor ETF climbing about 1.6%, while the SPDR S&P 500 ETF edged down close to 0.1%. 1
Deal whispers are stirring again in semiconductors as Tuesday kicks off. Micron announced it signed a letter of intent to acquire Powerchip’s P5 fab in Taiwan for $1.8 billion in cash. The move targets boosting DRAM production — that’s the memory found in PCs, phones, and servers — by the latter half of 2027. 2
Trade concerns added pressure. European tech shares fell nearly 3% Monday after President Donald Trump threatened new tariffs on eight European nations starting Feb. 1, with rates hitting 25% by June 1. The move shook exporters and reignited fears of another tariff escalation. “We doubt that (the tariffs) will be implemented as advertised,” said Andrew Kenningham, chief Europe economist at Capital Economics. 3
For ON stock, the key issue is whether this uncertainty spills over into U.S. chip stocks once trading picks up again. The company straddles two sectors—auto electrification and industrial power on one end, and data-centre power hardware on the other—markets that don’t always follow the same trends. 4
Onsemi last reported beating third-quarter estimates, driven by strong demand for chips powering AI data centres, which helped balance out cautious spending on its silicon carbide products in the automotive sector. CEO Hassane El-Khoury noted “continued signs of stabilization across our core markets” alongside “positive growth in AI,” though the company also warned of weak electric-vehicle demand in Europe and North America. 5
Silicon carbide, or SiC, powers high-voltage chips that run cooler and cut energy waste—key for electric drivetrains and fast chargers. But when EV demand shifts, suppliers often face order delays followed by sharp inventory clearouts.
Washington is tightening its grip on chip supply chains. A White House order last week slapped a 25% tariff on a limited set of “covered products” — advanced computing chips and related items — starting Jan. 15. The proclamation also carved out exemptions for uses like U.S. data centers and other domestic purposes. Industry group SEMI said this move aims to bolster U.S. semiconductor and critical mineral supply chains. 6
However, the situation works both ways. Should tariff threats become actual policy sooner than investors anticipate, customers might hold off on orders. Companies risk ending up with mismatched inventory, particularly in the auto and industrial sectors where demand shifts more gradually.
For the moment, ON stock will follow the broader market when Wall Street resumes trading Tuesday. Traders are eyeing two key dates: the Federal Reserve’s policy meeting on Jan. 27-28 and ASML’s quarterly earnings on Jan. 28. Both events could shake up the semiconductor sector with clues on rates and spending. 7
