ON Semiconductor Corporation, known as onsemi, specializes in providing intelligent power and sensing solutions, primarily for the automotive and industrial markets . The company offers a range of semiconductor products organized into three main segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group . onsemi is strategically focused on high-growth areas such as vehicle electrification and advanced driver-assistance systems (ADAS), and is expanding its silicon carbide (SiC) manufacturing capabilities to meet the increasing demand for high-efficiency power applications .
- Power Solutions Group (PSG) - Offers analog, discrete, module, and integrated semiconductor products, serving as the largest revenue contributor by providing essential components for power management and conversion .
- Analog and Mixed-Signal Group (AMG) - Develops a variety of analog and mixed-signal semiconductor products, previously known as the Advanced Solutions Group, supporting a wide range of applications in the automotive and industrial sectors .
- Intelligent Sensing Group (ISG) - Focuses on CMOS image sensors and related technologies, catering to the growing needs for advanced sensing solutions in various applications .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Hassane El-Khoury ExecutiveBoard | President, Chief Executive Officer, and Director | Chairman of the Board of Leia Inc. | CEO since December 2020, previously CEO of Cypress Semiconductor. Increased Cypress's revenue from $723M to $2.5B and enterprise value fivefold. | View Report → |
Simon Keeton Executive | Group President, Power Solutions Group (PSG) | None | Joined ON in 2007. Held multiple leadership roles, including EVP and GM of PSG since 2019. Extensive experience in power solutions and semiconductors. | |
Sudhir Gopalswamy Executive | Group President, Intelligent Sensing Group (ISG) and Analog and Mixed-Signal Group (AMG) | None | Joined ON in March 2022 as Chief Strategy Officer. Promoted to Group President in February 2024. Previously EVP at Infineon and Cypress Semiconductor. | |
Thad Trent Executive | Executive Vice President, Chief Financial Officer, and Treasurer | Board Member of Leia Inc. | CFO since February 2021, previously CFO of Cypress Semiconductor. Oversaw revenue growth from $723M to $2.5B at Cypress. | |
Alan Campbell Board | Chair of the Board of Directors | None | Chair since 2017. Former CFO of Freescale Semiconductor. Extensive experience in financial compliance, M&A, and global operations. | |
Bruce E. Kiddoo Board | Director | Board Member of San Onofre Parks Foundation | Director since 2020. Former CFO of Maxim Integrated. Expertise in financial compliance, M&A, and regulatory matters. | |
Christina Lampe-Önnerud Board | Director | Founder and CEO of Cadenza Innovation, Inc.; MIT Corporation Visiting Committee for Chemistry | Director since 2023. Renowned expert in energy storage with over 80 patents. Founder of Cadenza Innovation. | |
Christine Y. Yan Board | Director | Board Member of Ansell Limited, Cabot Corporation, and Modine Manufacturing Company | Director since 2018. Extensive experience in industrial manufacturing and corporate governance. | |
Gregory L. Waters Board | Director | Founder and CEO of MatrixSpace, Inc. | Director since 2020. Founder of MatrixSpace, Inc. Previously served on boards of Cyxtera Technologies, Mythic Inc., and Sierra Wireless. | |
Paul A. Mascarenas Board | Director | Board Member of The Shyft Group and United States Steel Corporation | Director since 2014. Former CTO of Ford Motor Company. Extensive experience in automotive technology and corporate governance. | |
Susan K. Carter Board | Director | Board Member of Amcor plc and Stanley Black & Decker, Inc. | Director since 2020. Former CFO of Ingersoll Rand and KBR. Expertise in financial reporting, M&A, and ESG matters. | |
Thomas L. Deitrich Board | Director | President, CEO, and Director of Itron, Inc.; Board Member of National Electrical Manufacturers Association | Director since 2020. CEO of Itron, Inc. since 2019. Extensive experience in energy and resource management technologies. |
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Given the current market softness and slowdown in silicon carbide growth, how confident are you in your strategy of building up bridge inventory in silicon carbide substrates, and is there a risk that this inventory could become obsolete or lead to pricing pressure?
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With the expansion of distribution inventory to support mass market customers despite a softer macro environment, how are you mitigating the risk of creating an overhang or potential write-downs if demand does not materialize as expected?
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Considering that you are reducing capital expenditures and capital intensity, are you at risk of underinvesting in future capacity, especially in light of your competitors receiving significant CHIPS Act funding that could enhance their competitive position?
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As you transition from 6-inch to 8-inch silicon carbide wafer production, which increases capacity by 2.5 times, how are you balancing this capacity expansion with the current demand environment to avoid potential overcapacity and its impact on pricing?
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In your efforts to capture share in 800-volt EV systems in China, you previously mentioned approaching 60% share but now state 50%; has there been a change in your competitive positioning or market dynamics affecting your share, and what are you doing to address this?
Research analysts who have asked questions during ON SEMICONDUCTOR earnings calls.
Blayne Curtis
Jefferies Financial Group
4 questions for ON
Christopher Danely
Citigroup Inc.
4 questions for ON
Joshua Buchalter
TD Cowen
4 questions for ON
Ross Seymore
Deutsche Bank
4 questions for ON
Vijay Rakesh
Mizuho
4 questions for ON
Vivek Arya
Bank of America Corporation
4 questions for ON
Christopher Rolland
Susquehanna Financial Group
3 questions for ON
Gary Mobley
Loop Capital
3 questions for ON
Harsh Kumar
Piper Sandler & Co.
3 questions for ON
Tore Svanberg
Stifel Financial Corp.
3 questions for ON
Quinn Bolton
Needham & Company, LLC
2 questions for ON
Toshiya Hari
Goldman Sachs Group, Inc.
2 questions for ON
Christopher Caso
Wolfe Research
1 question for ON
Clint Bolton
Needham & Company, LLC
1 question for ON
David Williams
The Benchmark Company
1 question for ON
Harlan Sur
JPMorgan Chase & Co.
1 question for ON
Jim Schneider
Goldman Sachs
1 question for ON
Jonathan Dorsheimer
William Blair & Company, L.L.C.
1 question for ON
Joseph Quatrochi
Wells Fargo Securities, LLC
1 question for ON
William Stein
Truist Securities
1 question for ON
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Infineon Technologies AG | PSG's primary competitors include this company, which competes in the semiconductor industry with a focus on power technologies and integrated circuit solutions. |
PSG's primary competitors include this company, which operates in the semiconductor market and focuses on power density and efficiency solutions. | |
PSG's primary competitors include this company, which specializes in silicon carbide and wide band gap technologies for power solutions. | |
ROHM Semiconductor | PSG's primary competitors include this company, which provides semiconductor solutions with a focus on power technologies. |
Nexperia BV | PSG's primary competitors include this company, which focuses on discrete and power semiconductor solutions. |
AMG competes with this company, which is known for its expertise in analog and mixed-signal semiconductor solutions. | |
AMG competes with this company, which specializes in analog and mixed-signal technologies for various applications. | |
Renesas Electronics Corporation | AMG competes with this company, which provides semiconductor solutions including microcontrollers and analog devices. |
AMG competes with this company, which focuses on high-performance power solutions. | |
AMG competes with this company, which offers semiconductor solutions for automotive, industrial, and IoT applications. | |
Sony Semiconductor Manufacturing Corporation | ISG's competitors include this company, which is a leader in imaging and sensing technologies, particularly for machine vision applications. |
Samsung Electronics Co., Ltd. | ISG's competitors include this company, which provides imaging and sensing solutions for various markets, including automotive and industrial. |
Omnivision Technologies Inc. | ISG's competitors include this company, which specializes in CMOS imaging solutions for automotive and industrial applications. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
United Silicon Carbide (SiC JFET technology business from Qorvo) | 2024 | onsemi announced a $115 million cash acquisition (expected to close in Q1 2025) to add SiC JFET technology that offers the lowest on-resistance and faster development, broadening its EliteSiC portfolio for AI data centers, EV battery disconnects, and SSCBs. |
Immaterial Business (ISG Segment) | 2024 | The immaterial business acquisition within the Intelligent Sensing Group (ISG) concluded in the quarter ended September 27, 2024, increasing the goodwill balance by $10.3 million, reflecting an incremental addition to the ISG segment. |
East Fishkill (EFK) Facility | 2022 | onsemi completed the acquisition of the EFK facility from GLOBALFOUNDRIES for a total of $406.3 million (with payments spanning from 2019 to January 2023), enhancing its manufacturing capacity for silicon power products despite a subsequent 250 basis points margin dilution. |
GT Advanced Technologies Inc. (GTAT) | 2021 | GTAT was acquired for a total price of $434.9 million (including $424.6 million in cash and $10 million in non-cash settlements), with key assets and $274.8 million in goodwill allocated to support intelligent power technologies and secure silicon carbide supply. |
Recent press releases and 8-K filings for ON.
- The Dutch government took control of Nexperia over national security and governance concerns, threatening critical semiconductor supply for automotive electronic control units.
- Export restrictions by both the U.S. and China on Nexperia chips, which account for about 80% of certain components, are exacerbating supply constraints.
- BMW and other European OEMs face potential production stoppages as existing chip inventories may only last a few weeks; BMW is collaborating with suppliers to mitigate risks and maintain production.
- The situation underscores the fragility of global semiconductor supply chains and the strategic importance of key suppliers like Nexperia to modern vehicle systems.
- onsemi entered into an agreement to acquire rights to Vcore power technologies and associated IP licenses from Aura Semiconductor, expanding its power management portfolio.
- The acquisition aims to deliver differentiated solutions across the entire power tree—from grid to core—for AI data center applications.
- onsemi expects the deal to have minimal impact on GAAP and non-GAAP EPS in the first fiscal year post-close and to be accretive thereafter.
- The transaction is slated to close in Q4 2025, subject to customary closing conditions.
- Demand Stabilization: ON Semi reports that automotive revenue hit bottom in Q2 and now shipments are aligned to natural end-demand rather than inventory replenishment, with second-half revenue expected to exceed first-half levels across industrial, medical, aerospace & defense, renewables, and automotive end-markets.
- Inventory & Backlog: Distribution channel inventory stands at 9–11 weeks, while end-customer inventories are at a low ~2 weeks, resulting in short lead times; Q3 bookings improved versus the prior two quarters, although six- to nine-month visibility remains limited.
- Margin & Restructuring: Utilization is at 68% (∼900 bp headwind) following a 12% front-end capacity reduction in Q1; ON Semi will exit ~$300 M of non-core revenue by 2026 and maintains a plan to achieve >50% gross margins through higher utilization, mix improvement, and cost exits.
- Automotive & Silicon Carbide: The company is realizing global design wins and share gains in EV silicon carbide solutions—in China, North America, and Europe—and is also advancing mixed-signal analog ASSP ramps with OEMs such as Xiaomi, Li Auto, NIO, and BYD.
- Capital Allocation: ON Semi emphasizes free cash flow generation and is deploying excess cash into share buybacks, while maintaining normalized pricing and ongoing cost optimization to support margin expansion.
- Management sees stabilization in demand versus prior quarters and expects the second half of 2025 to outpace the first, though cyclical recovery remains atypical due to geopolitical overhang.
- Auto/industrial end markets now constitute >80% of revenue; customer inventory levels vary from critical lows (~2 weeks) to pockets still destocking, with industrial applications nearer to natural demand.
- ON Semi will exit ~5% of low-margin dual-sourced and human-vision image sensor products by 2026 to concentrate on differentiated, higher-value offerings.
- Key growth engines include silicon carbide (Gen 4 trench devices with 12–14% EV penetration) and the “Treo” analog platform (65 nm monolithic HV/LV sampling, >5 million units shipped in H1 2025), targeting 60–70% gross margins.
- The company aims to resume top-line growth in 2027 and reach 50–53% gross margins through higher utilization, fab divestitures, and a favorable product mix.
- ON Semiconductor sees stabilization but not yet a full recovery, with automotive bottoming in Q2 and expected to grow in Q3; China automotive grew 23% YoY driven by EV penetration, while US and Europe remain weak.
- EV secular growth continues, with ~90% of RFQs leveraging silicon carbide; ON’s 4th-generation trench FETs outperform competitors’ devices, and a flexible mix of internal/external substrates mitigates supply risks.
- The AI data center business doubled year-over-year, with ON participating across the power tree—from high-power PSUs to core PMICs—and sampling five-by-five dual modules aligned with leading architectures.
- Plans to exit $300 million of low-margin legacy products in 2026—including $50–100 million from the Image Sensing Group and $200 million of other exits—will create a clear headwind around which growth initiatives will deliver above-market performance.
- ON commits to returning cash via share buybacks, increasing its program to 100% of free cash flow and having repurchased 107% YTD.
- Onsemi reported Q2 2025 revenue of $1.47 billion, down 15% year-over-year but up 2% sequentially amid a soft automotive market.
- Automotive segment revenue was $733 million (+4% Q/Q), industrial revenue $406 million (+2% Q/Q), and other category $329 million (+16% Q/Q).
- Gross margin fell 240 bps to 37.6%, operating margin declined 90 bps to 17.3%, and EPS was $0.53, in line with estimates.
- Q3 guidance calls for revenue of $1.47 billion to $1.57 billion and adjusted EPS of $0.54 to $0.64, reflecting low single-digit growth amid market uncertainty, including the end of the $7,500 federal EV tax credit.
- The company doubled SiC sales in China, highlighted shipments from its Treo platform, and returned 107% of free cash flow to shareholders via share repurchases year-to-date.
- President Trump’s AI plan underscores the need for both compute and power optimization in data centers; onsemi sees power semiconductors as critical to support rack power rising from 20–40 kW to 100–300 kW.
- onsemi has been strategically investing in intelligent power technologies to optimize energy delivery from the grid to AI compute units.
- The recent acquisition of a silicon carbide JFET business positions the company to service high-power data center applications and capitalize on AI infrastructure growth.
- Strategic Realignment: ON Semiconductor is repositioning its manufacturing footprint to focus on high‐value products and capacity optimization, which is expected to drive gross margin expansion and enhance competitive advantages in a volatile global environment.
- Market Recovery Outlook: The company noted signs of recovery in its industrial and automotive segments—with particular emphasis on the EV market in China—where new product ramps and disciplined channel inventory management are supporting growth.
- Technology and Product Focus: ON Semiconductor is advancing its silicon carbide technology for EVs and renewable energy as well as strengthening its image sensors portfolio in ADAS and industrial automation, positioning these as key growth drivers for the future.
- Q1 revenue of $1.45 billion and non-GAAP EPS of $0.55 exceeded guidance, demonstrating robust performance .
- Reported GAAP gross margin of 20.3% and non-GAAP gross margin of 40.0%, reflecting substantial adjustments for special items .
- Free cash flow increased 72% year-over-year with 66% of Q1 free cash flow returned to shareholders through share repurchases .
- Implemented cost-saving measures including a 12% internal fab capacity reduction and a 9% global workforce reduction to lower fixed costs .
- Q2 guidance projects revenue between $1.4 billion and $1.5 billion with expected non-GAAP gross margins of 36.5%-38.5%, as margin improvements are anticipated with recovering utilization .
- ON Semiconductor approved pre-tax non-cash impairment charges between $600 million and $700 million as part of its restructuring and cost reduction initiatives.
- The impairment charges, associated with long-lived manufacturing equipment, are expected to reduce 2025 depreciation expense by $30 million to $35 million.
- This strategic move aims to realign the company’s manufacturing capacity with its long-term operational needs.