ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ:ON) - **Date**: August 7, 2023 - **Participants**: Thad Trent (CFO), Simon Keeton (EVP, GM of Power Solutions Group) Industry Insights - **Industry**: Semiconductor, specifically focusing on automotive and industrial sectors Key Points and Arguments Auto and Industrial Business Performance - The auto industry is forecasted to grow about 5% in 2023 and 1.5% in 2024, while EV growth is projected at a 35% CAGR over the next several years [6][2] - ON Semiconductor is over-indexed in EVs and advanced driver-assistance systems (ADAS), with $50 content in internal combustion vehicles and $750 in EVs, indicating a significant growth opportunity [3][4] - Alternative energy sectors within industrial applications grew by 70% year-over-year [3] Inventory and Demand Management - Aggregate inventories are at all-time highs, but ON Semiconductor does not perceive large pockets of excess inventory [2][3] - The company has been managing internal and channel inventory tightly, maintaining utilization rates around 70% [7][8] Long-Term Supply Agreements (LTSA) - The company added $4 billion in long-term agreements last quarter, totaling $11 billion in LTSAs, with an average duration of about five years [4][10] - These agreements provide visibility into order patterns and help in the development of next-generation products [10] Silicon Carbide Market Position - ON Semiconductor is gaining market share in silicon carbide due to superior performance, integrated supply chain, and a comprehensive product offering [12][13] - The company expects silicon carbide gross margins to reach corporate averages by the end of 2023, with significant growth anticipated in the coming years [28] Image Sensor Business Growth - The image sensor business is experiencing growth due to increased sensor adoption in vehicles, with ON Semiconductor holding over 70% market share in ADAS globally [19][20] - The company has restructured its sensor business to focus on automotive (90%) and industrial (10%) applications, moving away from consumer devices [20] Medical Sector Opportunities - The medical segment is emerging, with a projected growth rate of 20% per year, driven by applications like continuous glucose monitoring and hearing aids [26] Non-Core Business Exits - The company is exiting a highly volatile, price-sensitive business, with a gross margin in the low to mid-40% range. It has exited $100 million so far and plans to exit an additional $350 million to $400 million by year-end [21][23] Fab Strategy and Production Capacity - ON Semiconductor has divested four fabs and acquired the East Fishkill fab, maintaining a strategy to manufacture about 65% of its products internally [34] - The transition to 8-inch wafers is ongoing, with production expected to ramp up in 2025, providing cost benefits due to increased wafer output [30][31] Geopolitical and Supply Chain Considerations - The company is cautious about sourcing substrates from China due to quality concerns and geopolitical risks, with over 50% of substrates expected to come from internal sources by year-end [16][17] AI Market Potential - There are opportunities for ON Semiconductor to benefit from AI developments, particularly in power efficiency for AI servers [46][47] Additional Important Insights - The company is focused on optimizing its fab operations and addressing cost structure challenges at the East Fishkill fab, with expectations to resolve these issues by the end of 2024 [38][39] - The management emphasizes a cautious approach to scaling production and ensuring quality while navigating market uncertainties [8][36]

Quarterly Investor Presentation Second Quarter 2023 1 PPuubblliicc IInnffoorrmmaattiioonn ©© oonnsseemmii 22002233 Safe Harbor Statement and Non-GAAP and Forecast Information ...

ON Semiconductor Corporation (NASDAQ:ON) Q2 2023 Earnings Conference Call July 31, 2023 9:00 AM ET Company Participants Parag Agarwal - VP, IR & Corporate Development Hassane El-Khoury - President & CEO Thad Trent - CFO Conference Call Participants Blake Friedman - Bank of America Harsh Kumar - Piper Sandler Gary Mobley - Wells Fargo Christopher Rolland - Susquehanna Joshua Buchalter - TD Cowen Quinn Bolton - Needham Timothy Arcuri - UBS William Stein - Truist Securities Operator Good day, and thank you for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Commission File Number) 001-39317 ON SEMICONDUCTOR CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-3840979 (State or other j ...

ON Semiconductor Corporation (NASDAQ:ON) Bank of America 2023 Global Technology Conference June 6, 2023 1:00 PM ET Company Participants Hassane El-Khoury - President and Chief Executive Officer Thad Trent - Executive Vice President and Chief Financial Officer Conference Call Participants Vivek Arya - Bank of America Vivek Arya Good morning, welcome back to the session. I am Vivek Arya, from the BofA Semiconductor and Semi-Cap Equipment team, really delighted and honored to have the team from ON Semi, Hassan ...

ON Semiconductor Corporation (NASDAQ:ON) 51st Annual J.P. Morgan Global Technology, Media and Communications Conference Call May 23, 2023 3:55 PM ET Company Participants Hassane El-Khoury - President and Chief Executive Officer Thad Trent - Executive Vice President and Chief Financial Officer Conference Call Participants Harlan Sur - JPMorgan Chase & Co. Harlan Sur All right. Good afternoon, and welcome to the second day of JPMorgan's 51st Annual Technology, Media and Communications Conference. My name is H ...

ON Semiconductor Corporation (NASDAQ:ON) Q1 2023 Earnings Conference Call May 1, 2023 9:00 AM ET Company Participants Parag Agarwal - Vice President of Investor Relations & Corporate Development Hassane El-Khoury - President and Chief Executive Officer Thad Trent - Chief Financial Officer Conference Call Participants Ross Seymore - Deutsche Bank Vivek Arya - Bank of America Chris Danely - Citi Toshiya Hari - Goldman Sachs Harsh Kumar - Piper Sandler Raji Gill - Needham & Company Matt Ramsay - TD Cowen Chris ...

Quarterly Investor Presentation First Quarter 2023 1 PPuubblliicc IInnffoorrmmaattiioonn ©© oonnsseemmii 22002233 Safe Harbor Statement and Non-GAAP and Forecast Information ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Commission File Number) 001-39317 ON SEMICONDUCTOR CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-3840979 (State or other ...

ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ: ON) - **Date**: March 7, 2023 - **Participants**: Hassane El-Khoury (President and CEO), Thad Trent (CFO), Joe Moore (Morgan Stanley) Industry Dynamics - **Automotive Market**: - Strong performance in the automotive sector driven by megatrends such as electrification and increased content growth in vehicles, particularly in Level 2+ autonomy and electric vehicles (EVs) [4][12] - Sustained strength in automotive is not tied to the Seasonally Adjusted Annual Rate (SAAR) but rather to the penetration of these trends into the general vehicle population [4] - **Consumer and Compute Markets**: - Notable softness observed since Q2 2022, leading to proactive management of utilization rates [4][5] - **Industrial Market**: - Softness noted in consumer-related industrial sectors, while core industrial segments like energy infrastructure and storage showed significant growth, ending the year with a 75% growth from 2021 [5] Strategic Business Decisions - **Exit Strategy**: - The company has exited $294 million in businesses with less sustainable profit pools, with a commitment to continue this strategy despite market conditions [6][8] - The exit strategy is market-dependent, with an acceleration in exiting certain businesses due to softness in consumer and compute markets [8][9] - **Long-term Supply Agreements (LTSA)**: - Over $16.5 billion in long-term supply agreements secured, providing visibility and stability in revenue [17][22] - These agreements allow for better capital investment decisions based on customer commitments over multiple years [19][20] Market Opportunities - **ADAS and Image Sensors**: - Growth in Advanced Driver Assistance Systems (ADAS) driven by increased vehicle content and camera usage, with expectations of doubling the number of cameras in vehicles over the next five years [31][32] - **Silicon Carbide (SiC)**: - The company is well-positioned in the SiC market, leveraging decades of expertise and investment in technology and packaging [34][36] - Anticipated revenue of $1 billion from SiC, with strong customer demand and successful qualifications with major automotive manufacturers [34][48] Financial Outlook - **Gross Margins**: - 2023 is viewed as a transition year with expected headwinds from SiC start-up expenses and the East Fishkill fab acquisition, but margins are projected to stabilize at or above corporate averages by year-end [57][58] - The company anticipates a gross margin range of 48% to 50% in the long term, with additional tailwinds from exiting subscale fabs and ramping new products [58] Key Takeaways - The automotive sector remains a stronghold for ON Semiconductor, with significant growth opportunities in ADAS and SiC technologies - The proactive management of business exits and inventory levels positions the company favorably for future growth - Long-term supply agreements provide a solid foundation for revenue stability and capital investment planning - The company is navigating current market softness while maintaining a focus on sustainable profit pools and margin improvement strategies