onsemi and DENSO Collaborate for a Strengthened Relationship

Rhea-AI Summary

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.

Positive

• Strategic partnership with DENSO, the second largest global automotive systems supplier
• DENSO's planned share acquisition strengthens long-term commitment
• Secured position as key semiconductor supplier for AD and ADAS technologies

Negative

• None.

Insights

Financial Analyst

The strategic collaboration between onsemi and DENSO, Japan's leading tier-one automotive supplier, represents a significant development in the automotive semiconductor space. DENSO's intention to acquire onsemi shares signals a deeper commitment to securing critical semiconductor supply chains, particularly important given the recent industry-wide shortages. This strengthened partnership could provide onsemi with more stable revenue streams and potentially increased market share in the growing ADAS and autonomous driving segments. The deal enhances onsemi's position in the automotive semiconductor market, where they've already established a decade-long presence. While the specific investment amount isn't disclosed, DENSO's stake acquisition could provide additional financial stability and strategic advantages for both companies.

Tech Expert

This partnership strengthens onsemi's position in the rapidly expanding ADAS and autonomous driving semiconductor market. Their intelligent sensing technologies are important for vehicle safety and autonomy features, which are becoming standard in modern vehicles. The collaboration with DENSO, a major automotive supplier, validates onsemi's technological capabilities and could accelerate the development and adoption of advanced semiconductor solutions. The focus on supply chain resilience is particularly noteworthy, as semiconductor availability has become a critical factor in automotive production. This alliance could lead to faster innovation cycles and more integrated development of automotive-specific semiconductor solutions.

SCOTTSDALE, Ariz. & KARIYA, Japan--(BUSINESS WIRE)-- onsemi (Nasdaq: ON) and tier-one automotive supplier DENSO CORPORATION announced today that they are strengthening their long-term relationship to support the procurement of autonomous driving (AD) and advanced driver assistance systems (ADAS) technologies.

For over 10 years, onsemi has been supplying DENSO with the latest intelligent automotive sensors to enhance ADAS and AD performance. These semiconductors have become increasingly vital in improving vehicle intelligence including connectivity, to help reduce traffic accident fatalities.

“DENSO’s desire to work more closely with us demonstrates its confidence in our innovative capabilities, decades of expertise and supply resilience in automotive technologies," said Hassane El-Khoury, president and CEO of onsemi.

“As the second largest global supplier of automotive systems and parts, DENSO depends on a robust supply chain for critical materials like semiconductors to continue to reliably serve our customers with cutting-edge products,” said Shinnosuke Hayashi, president of DENSO CORPORATION. “Therefore, it is essential to collaborate closely with industry leaders like onsemi, which has been improving the safety and autonomy of vehicles with its intelligent sensing technologies for years and provides the supply assurance we expect."

As a mark of their collaboration, DENSO intends to acquire onsemi shares on the open market, aiming to further enhance their long-term relationship.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner and smarter world. onsemi is recognized as a Fortune 500^® company and included in the Nasdaq-100 Index^® and S&P 500^® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.

About DENSO CORPORATION

Globally headquartered in Kariya, Japan, DENSO is a $47.2 billion leading mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in around 180 facilities worldwide to provide opportunities for rewarding careers and to produce cutting-edge electrification, powertrain, thermal and mobility electronics products, among others, that change how the world moves. In developing such solutions, the company’s 162,000 global employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. DENSO spent around 7.7 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2024. For more information about DENSO’s operations worldwide, visit https://www.denso.com/global.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216324037/en/

Krystal Heaton

Director, Head of Public Relations

onsemi

(480) 242-6943

Krystal.Heaton@onsemi.com



Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

(602) 244-3437

investor@onsemi.com



Public Relations Division

DENSO CORPORATION

denso-pr@jp.denso.com

Source: onsemi

FAQ

What is the strategic partnership between onsemi (ON) and DENSO announced in 2024?

onsemi and DENSO announced a strengthened partnership focusing on autonomous driving and ADAS technologies procurement, with DENSO planning to acquire onsemi shares on the open market.

How long has onsemi been supplying semiconductors to DENSO?

onsemi has been supplying DENSO with intelligent automotive sensors for over 10 years.

What is the purpose of DENSO acquiring onsemi (ON) shares?

DENSO's planned acquisition of onsemi shares aims to enhance their long-term relationship and strengthen their collaboration in automotive technologies.

What technologies will onsemi (ON) supply to DENSO under this partnership?

onsemi will supply intelligent automotive sensors for autonomous driving (AD) and advanced driver assistance systems (ADAS) technologies to DENSO.