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Company Overview
On Semiconductor (ON) is a globally recognized provider of energy-efficient semiconductor solutions, renowned for its robust portfolio in power and signal management, logic devices, and custom integrated solutions. With an enduring commitment to reducing global energy consumption, the company delivers high-performance semiconductors that are vital for automotive, communications, computing, consumer, industrial, medical, and military/aerospace applications. Employing industry-specific innovations, On Semiconductor has solidified its reputation in power management and sensor technology, making it a trusted partner for engineers worldwide.
Core Business Areas
The company’s operations span a diverse range of semiconductor products. Its offerings include power semiconductors and sensors tailored for demanding markets such as automotive and industrial sectors, along with solutions for consumer electronics and communications systems. By addressing a wide array of design challenges, On Semiconductor provides engineers with the necessary tools to optimize performance and enhance energy efficiency in applications ranging from electric vehicles and autonomous systems to industrial automation and renewable energy systems.
Technological and Manufacturing Excellence
On Semiconductor has transitioned from a highly vertically integrated model to a hybrid manufacturing strategy, allowing it to maintain both flexibility and responsiveness in production. This strategic shift facilitates capacity expansion while preserving high-quality standards across its vast network of manufacturing facilities and design centers located in North America, Europe, and the Asia Pacific region. The company’s emphasis on a world-class supply chain and rigorous quality programs ensures the reliability and precision of its semiconductor components.
Global Market Position and Competitive Landscape
In today’s tech-driven environment, On Semiconductor has established itself as one of the major players in the semiconductor industry. It is recognized as the second-largest power chipmaker on a global scale and stands as the largest supplier of image sensors in the automotive market. Its unparalleled focus on energy-efficient design and semiconductor-based innovation is key in addressing the evolving needs of diverse markets, setting it apart from competitors with a strong emphasis on technological refinement and application-specific solutions. The company continues to navigate a competitive landscape by leveraging its deep expertise and an extensive global footprint.
Innovation and Application Diversity
At the heart of On Semiconductor’s value proposition is its dedication to solving intricate engineering challenges. The company’s innovative approach integrates advanced semiconductor technology into systems that drive efficiency and operational excellence. Whether improving signal reliability in telecommunications or optimizing power delivery in industrial automation systems, its products are designed to meet the stringent demands of modern electronic applications. This focus is particularly critical in emerging areas such as electric and autonomous vehicles where precision, durability, and energy management are paramount.
Integrated Supply Chain and Distribution
A crucial aspect of On Semiconductor’s success is its responsive and agile supply chain. The company’s widespread network of manufacturing sites, sales offices, and global design centers enables it to efficiently meet market demand and maintain robust customer satisfaction. This integrated approach not only supports its high-volume production capabilities but also fosters close collaboration with customers, ensuring tailored solutions that underscore its commitment to quality and operational excellence.
Industry-Specific Expertise and Customer-Centric Approach
On Semiconductor’s long-standing history and expertise in semiconductor technology underscore its ability to cater to specialized market requirements. The company employs precise, technical methodologies underpinned by extensive research and development efforts, which are critical for evolving applications in power management and sensor-based technologies. By engaging actively with market trends and engineering challenges, On Semiconductor continues to offer value-driven products that support technological advancement while maintaining energy efficiency at the forefront of its design philosophy.
Conclusion
In summary, On Semiconductor is a comprehensive semiconductor solutions provider that plays a pivotal role in advancing energy efficiency across multiple high-demand sectors. With a focus on automotive, industrial, and emerging technological applications, its blend of innovative product offerings and a strategically agile manufacturing model highlights its importance in the global semiconductor landscape. Its balanced approach, emphasizing quality, flexibility, and technological sophistication, ensures that it remains a key reference point for engineers and market participants seeking robust, energy-efficient semiconductor solutions.
onsemi has launched the Hyperlux™ ID family, the industry's first real-time, indirect time-of-flight (iToF) sensor capable of high-precision long-distance measurements and 3D imaging of fast-moving objects. The innovative sensor extends depth sensing up to 30 meters, quadrupling the range of standard iToF sensors while maintaining a smaller form factor.
Key features include:
- Simultaneous monochrome imaging and depth information capture
- Proprietary global shutter pixel architecture with on-board storage
- 1.2MP resolution with 3.5µm BSI pixels
- Real-time depth processing capabilities
The technology aims to enhance industrial applications including automation, robotics, manufacturing quality control, logistics, agriculture, and access control systems. Two models are available: the AF0130 with integrated processing for simplified integration, and the AF0131 allowing custom depth algorithms implementation.
onsemi (NASDAQ: ON) has proposed to acquire Allegro MicroSystems (NASDAQ: ALGM) for $35.10 per share in an all-cash transaction, valuing the company at an enterprise value of $6.9 billion. The offer represents a 57% premium to Allegro's unaffected closing share price on February 28, 2025.
The proposal follows multiple attempts by onsemi to engage with Allegro over six months, including an initial offer of $34.50 per share in September 2024. The combination would unite two complementary businesses in automotive and industrial markets, particularly in magnetic sensing and power ICs.
onsemi plans to finance the transaction through a combination of committed financing, cash on hand, and existing credit facilities. The company aims to create a diversified leader in automotive, industrial, and AI data center applications through this strategic acquisition.
onsemi reported Q4 2024 results with revenue of $1,722.5 million and GAAP diluted EPS of $0.88. The company achieved a GAAP gross margin of 45.2% and operating margin of 23.7%. Full-year 2024 free cash flow reached $1.2 billion, marking a 3X increase year-over-year.
Q4 showed revenue declines across segments, with PSG down 16% YoY to $809.4M, AMG down 18% to $610.6M, and ISG down 2% to $302.5M. Total revenue for 2024 was $7,082.3M, representing a 14% decrease from 2023.
Looking ahead to Q1 2025, onsemi projects revenue between $1,350-1,450 million with gross margin of 38.9-40.9% and diluted EPS of $0.42-0.52. The company emphasized its structural improvements and commitment to financial discipline despite market uncertainty.
onsemi has received validation from the Science Based Targets initiative (SBTi) for its near-term greenhouse gas emission reduction targets. The company commits to reduce absolute scope 1 and 2 GHG emissions by 58.8% and scope 3 GHG emissions by 35.0% by 2034 from a 2022 base year.
These reductions would result in approximately one million metric tons of CO2 equivalent (MTCO2e) fewer emissions for scope 1 and 2, and 80,000 MTCO2e fewer emissions for scope 3. The company plans to achieve these targets through process gas management, point-of-use abatement tools, deep decarbonization, energy conservation strategies, and supplier engagement.
Additionally, onsemi has committed that 71.3% of its suppliers by emissions will have science-based targets by 2029.
onsemi (Nasdaq: ON) has announced it will release its fourth quarter and full year 2024 financial results before market opening on Monday, February 10, 2025. The company will hold a conference call at 9 a.m. Eastern Time on the same day to discuss the results.
Investors and interested parties can participate through two channels: a live webcast available through the company's Investor Relations website section, which will remain accessible for 30 days after the event, or via teleconference by pre-registering through the provided link.
onsemi has completed the acquisition of Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, for $115 million in cash. The acquisition expands onsemi's market opportunity by $1.3 billion by 2030 and strengthens its position in high and mid voltage power semiconductors.
The SiC JFET technology will complement onsemi's EliteSiC power portfolio, addressing efficiency needs in AI data centers' power supply units. In electric vehicle applications, it improves efficiency and safety through solid-state switches in battery disconnect units. The technology also enables energy storage topologies and solid-state circuit breakers in industrial applications.
onsemi (ON) and DENSO announced a strengthened partnership to support the procurement of autonomous driving (AD) and advanced driver assistance systems (ADAS) technologies. The collaboration builds on their decade-long relationship where onsemi has supplied DENSO with intelligent automotive sensors. As part of this enhanced partnership, DENSO plans to acquire onsemi shares on the open market. The collaboration aims to improve vehicle intelligence and connectivity while helping reduce traffic accident fatalities.
onsemi has announced an agreement to acquire Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, for $115 million in cash. The acquisition is expected to expand onsemi's market opportunity by $1.3 billion within 5 years.
The deal will enhance onsemi's EliteSiC power portfolio, specifically addressing high energy efficiency needs in AI data center power supply units. SiC JFETs offer the lowest on-resistance per chip area, using less than half of any other technology, and are compatible with off-the-shelf drivers. These benefits enable faster development, reduced energy consumption, and lower system costs.
The transaction is expected to close in Q1 2025, subject to customary conditions.
onsemi has been selected as the primary supplier of image sensors for Subaru's next-generation EyeSight stereo-camera front sensing system. The advanced Hyperlux AR0823AT image sensor will serve as the system's 'eyes', featuring whole pixel design and High Dynamic Range (HDR) technology to capture clear images in varying light conditions. The sensors include functional safety features meeting ASIL C standards and special controls for synchronous image capture in stereo vision. This collaboration supports Subaru's goal of achieving zero fatal road accidents by 2030 through enhanced AI-integrated driver assistance systems.
onsemi has launched the Treo Platform, an advanced analog and mixed-signal platform using Bipolar-CMOS-DMOS (BCD) technology on a 65nm node. The platform supports voltage ranges of 1-90V and temperatures up to 175°C, targeting automotive, medical, industrial, and AI data center applications.
The platform enables improved performance in various applications, including enhanced ultrasonic sensor accuracy for automotive park assist, ultra-low-power AFEs for continuous glucose monitoring, and efficient power delivery solutions for data centers. Multiple product families built on Treo are already sampling, including voltage translators, AFEs, LDOs, and various controllers, with manufacturing at onsemi's 300mm fab in East Fishkill, NY.
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