ON Semiconductor's stock surged 5.58% in Friday's trading session, riding the wave of a broader rally in the semiconductor sector. The company's shares climbed alongside other major chip manufacturers, as investors responded positively to signs of recovery in the semiconductor industry.

The upward movement in chip stocks was largely fueled by Microchip Technology's strong performance and optimistic forecast. Microchip, a peer in the semiconductor space, saw its stock soar by 13% after reporting better-than-expected fourth-quarter revenue and projecting first-quarter results above analyst estimates. This positive outlook from Microchip has raised hopes for a turnaround in the semiconductor industry, which has been grappling with a prolonged slump.

While specific news for ON Semiconductor was not available, the company, as a major player in the chip industry, is likely benefiting from the same market forces driving up its peers. The semiconductor sector's recovery is attributed to the gradual clearing of chip inventories that were stockpiled during the pandemic. As demand normalizes and inventories reduce, companies like ON Semiconductor may see improved market conditions and potentially stronger financial performances in the coming quarters.