Onsemi, a key supplier of silicon carbide chips used to enhance the range of electric vehicles, has provided a promising second-quarter revenue forecast, exceeding Wall Street expectations. This resilience in demand for its chips comes despite economic uncertainties introduced by U.S. President Donald Trump's tariffs on auto imports.

The company's orders for silicon carbide chips in the first quarter have been bolstered by the increasing sales of EVs in China and Europe. However, a 25% U.S. tariff on auto imports poses a threat to raise prices, with Trump's duties, which took effect on April 3, potentially causing supply chain disruptions and escalating car prices by thousands of dollars, leading some automakers to withdraw their forecasts.

Onsemi had to abandon its $6.9 billion takeover bid for Allegro MicroSystems last month, citing a lack of full engagement from Allegro's board. Additionally, the chipmaker announced in February its plans to lay off approximately 2,400 employees worldwide in 2025.

The company projects second-quarter revenue to fall between $1.40 billion and $1.50 billion, with the midpoint surpassing analysts' estimates of $1.42 billion, according to LSEG data. Adjusted earnings per share are expected to be between 48 cents and 58 cents, compared to estimates of 52 cents. Onsemi's first-quarter revenue reached $1.45 billion, exceeding estimates of $1.40 billion but showing a 22% decrease from the previous year.