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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 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.
onsemi (Nasdaq: ON) announced that its East Fishkill wafer fab in New York has received Category 1A Trusted Supplier accreditation from the U.S. Department of Defense's Defense Microelectronics Activity. This certification allows onsemi to produce secure advanced semiconductors for critical aerospace and defense applications. The facility, which is the only 300 mm power discrete and image sensor fab in the U.S., joins onsemi's Gresham, Oregon site as the company's second accredited fab. The accreditation enables onsemi to provide custom-designed, custom-manufactured power and sensing solutions specifically for DoD applications.
onsemi reported Q3 2024 results with revenue of $1,761.9 million, exceeding expectations. The company achieved GAAP gross margin of 45.4% and operating margin of 25.3%. GAAP diluted earnings per share reached $0.93, while non-GAAP EPS was $0.99. The company returned 75% of free cash flow to shareholders through stock repurchases over the last 12 months. For Q4 2024, onsemi projects revenue between $1,710-$1,810 million with gross margin of 43.9-45.9%. Despite a year-over-year revenue decline of 19%, the company saw sequential growth of 2% from Q2 2024.
onsemi (Nasdaq: ON) has announced plans to release its third quarter financial results on Monday, October 28, 2024, before the market opens. The company will host a conference call at 9 a.m. Eastern Time on the same day to discuss the results. Investors and interested parties can access the call through two methods:
1. A live webcast available via the "Investor Relations" section of onsemi's website at http://www.onsemi.com. A re-broadcast will be available approximately one hour after the live broadcast and remain accessible for 30 days.
2. A teleconference which can be accessed by pre-registering through a provided link.
The financial results will cover the quarter ending September 27, 2024.
onsemi (ON) reported Q2 2024 results with revenue of $1,735.2 million, down 17% year-over-year. GAAP gross margin was 45.2% and non-GAAP gross margin was 45.3%. GAAP diluted EPS was $0.78, while non-GAAP diluted EPS reached $0.96. The company highlighted a free cash flow increase of ~$250 million year-over-year and returned ~$650 million to shareholders through stock repurchases over the last twelve months.
For Q3 2024, onsemi projects revenue between $1,700 to $1,800 million and non-GAAP diluted EPS of $0.91 to $1.03. The company remains focused on driving growth through market share gains, investments in strategic markets, and expanding its portfolio of analog and mixed-signal solutions. onsemi also emphasized strengthening its silicon carbide leadership in automotive, as evidenced by a recent supply agreement with Volkswagen Group.
onsemi has signed a multi-year deal with Volkswagen Group to be the primary supplier of a complete power box solution for its next-generation traction inverter. The solution, based on onsemi's EliteSiC M3e platform, features silicon carbide-based technologies in an integrated module scalable across all power levels. This will enable Volkswagen to customize power needs for different vehicles while maximizing efficiency and performance.
The power box solution can handle more power in a smaller package, reducing energy losses and improving system efficiency. Volkswagen will benefit from onsemi's planned expansion of silicon carbide manufacturing in the Czech Republic, establishing an end-to-end production facility in Europe for the traction inverter power system.
onsemi (Nasdaq: ON) has introduced its latest generation silicon carbide technology platform, EliteSiC M3e MOSFETs, to accelerate the global transition to electrification. This new platform significantly improves energy efficiency for power-hungry applications, with the ability to reduce conduction losses by 30% and turn-off losses by up to 50% compared to previous generations.
The EliteSiC M3e MOSFETs offer the industry's lowest specific on-resistance (RSP) with short circuit capability, important for the traction inverter market. They can deliver approximately 20% more output power in the same traction inverter housing or enable designs with 20% less SiC content, reducing costs and allowing for smaller, lighter, and more reliable systems.
onsemi has also unveiled plans to introduce multiple future generations of silicon carbide at an accelerated pace through 2030, applying Moore's Law concepts to SiC development to meet rising global energy demands.
onsemi (Nasdaq: ON) will announce its second-quarter financial results on July 29, 2024. The report will be released before the market opens, detailing the fiscal period ending June 28, 2024. Following the release, a conference call will be held at 9 a.m. Eastern Time (ET) to discuss the results. Stakeholders can access the live webcast via the 'Investor Relations' section of onsemi's website or listen to a rebroadcast of the call, which will be available for 30 days. Pre-registration is required for those opting to join via teleconference.
onsemi has acquired SWIR Vision Systems to enhance its intelligent sensing product portfolio. SWIR Vision Systems specializes in CQD® short wavelength infrared technology, extending the detectable light spectrum for advanced imaging capabilities. This acquisition will integrate SWIR's patented technology with onsemi's CMOS sensors, creating cost-effective, high-volume SWIR sensors for industrial, automotive, and defense applications.
SWIR technology, traditionally by high costs and complex manufacturing, will now benefit from onsemi's expertise, resulting in more compact and affordable imaging systems. The acquisition will not significantly impact onsemi's near to midterm financial outlook.
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