Onsemi forecast first-quarter revenue below Wall Street expectations on Monday, hit by softer demand for its automotive chips as customers cut back on orders owing to economic uncertainty, sending its shares down 9% in premarket trading.

The company expects first-quarter revenue between USD 1.35 billion and USD 1.45 billion, compared with analysts' estimates of USD 1.69 billion, according to data compiled by LSEG.

Onsemi's forecast signals that the automotive chip market is still sluggish, with many customers holding off on placing new orders for its silicon carbide chips owing to soft demand for battery-powered cars.

"While 2025 remains uncertain, we remain committed to our long-term strategy," said Onsemi CEO Hassane El-Khoury.

The company reported fourth-quarter revenue of USD 1.72 billion, missing estimates of USD 1.76 billion.