On Semiconductor (ON) recently announced its agreement to acquire the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo (QRVO) for $115 million in cash. The acquisition from Qorvo enhances ON’s EliteSiC power portfolio, enabling the company to meet the growing demand for high energy efficiency and power density in AC-DC power supply units for AI data centers. The move also positions ON to accelerate its readiness for ...

ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ: ON) - **Date**: December 10, 2024 - **Participants**: Hassane El-Khoury (CEO), Thad Trent (CFO) Key Points Acquisition of Universal Silicon Carbide Business - ON Semiconductor acquired the Universal Silicon Carbide business from Qorvo to enhance its power semiconductor offerings, particularly in silicon carbide and wide bandgap technologies [2] - The acquisition aligns with the increasing power requirements driven by AI, where power servers are transitioning from 40-kilowatt to hundreds of kilowatts, necessitating more efficient and compact solutions [2] - Silicon carbide JFET technology is highlighted as superior for applications in AI, industrial solid-state breakers, and electric vehicles [2][3] Development of Treo Programmable Analog Platform - The Treo platform is a mixed-signal analog product based on 65-nanometer BCD technology, capable of handling voltages from 1-volt to 90-volts [6] - Expected revenue from Treo is projected to reach $1 billion by 2030, with margins between 60% to 70% [6] - The platform allows for rapid product development, reducing time from concept to sample to customer to six to nine months, which is crucial in fast-paced markets like AI [6] Gross Margin and Utilization Insights - Current gross margins are in the mid-40s with utilization at 65%, which is historically low for the company [9] - The company has managed to maintain higher margins compared to previous downturns, indicating structural improvements [9] - For every point of utilization increase, gross margins can improve by 15 to 20 basis points, suggesting potential for margin recovery as demand increases [9] Inventory Management - ON Semiconductor has a working inventory of 113 days, which is within the optimal range of 100 to 120 days [11] - The company also holds an additional 100 days of strategic inventory for fab transitions and silicon carbide ramp-up [11] Market Demand and Inventory Digestion - The company is currently in an inventory digestion phase, particularly in the automotive sector, with demand not picking up as expected [15] - European automotive markets are facing challenges, impacting demand and leading to a cautious outlook for the next few quarters [15][17] Silicon Carbide Market Outlook - Silicon carbide is identified as a growth vector, particularly in electric vehicles (EVs), with expected increases in both EV production and silicon carbide penetration [20] - The penetration of silicon carbide in EVs is currently low, at about 6%, indicating significant growth potential as OEMs shift to 800-volt systems [20] Competitive Landscape and Pricing Strategy - ON Semiconductor does not view pricing as a lever in a weak demand environment, emphasizing the importance of product value over price reductions [26] - The company aims to maintain competitive margins through advanced technology rather than engaging in price wars [26][27] Conclusion - ON Semiconductor is strategically positioned for growth through acquisitions, innovative product development, and effective inventory management, despite current market challenges. The focus on silicon carbide and programmable analog solutions aligns with industry trends towards efficiency and performance in power semiconductor applications.

THIEF RIVER FALLS, Minn., Dec. 03, 2024 (GLOBE NEWSWIRE) -- DigiKey, a leading global commerce distributor offering the largest selection of technical components and automation products in stock for immediate shipment, announced the release of Season 3 of the Supply Chain Transformed video series, sponsored by Omron Automation and onsemi. The new season will focus on innovative technologies, including IoT, that are fueling the future of the logistics industry. The world of logistics is undergoing a widespre ...

I presented my "Strong Buy" thesis for ON Semiconductor Corporation (NASDAQ: ON ) in July 2024, emphasizing the challenges of destocking activities in the automotive and industrial markets. ON Semiconductor delivered 2% sequential revenue growth for More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potent ...

ON Semiconductor Corporation (NASDAQ:ON) onsemi Investor Webinar: Treo Platform Launch November 18, 2024 9:00 PM ET Company Participants Parag Agarwal - Vice President-Investor Relations & Corporate Development Thad Trent - Chief Financial Officer Sudhir Gopalswamy - President-AMG & ISG Conference Call Participants Ross Seymore - Deutsche Bank Gary Mobley - Loop Vivek Arya - Bank of America Securities Joshua Buchalter - TD Cowen Quinn Bolton - Needham & Company Christopher Rolland - Susquehanna Jeremy Kwan ...

ON Semiconductor Corporation (NASDAQ:ON) onsemi Investor Webinar: Treo Platform Launch November 18, 2024 9:00 PM ET Company Participants Parag Agarwal - Vice President-Investor Relations & Corporate Development Thad Trent - Chief Financial Officer Sudhir Gopalswamy - President-AMG & ISG Conference Call Participants Ross Seymore - Deutsche Bank Gary Mobley - Loop Vivek Arya - Bank of America Securities Joshua Buchalter - TD Cowen Quinn Bolton - Needham & Company Christopher Rolland - Susquehanna Jeremy Kwan ...

Safe Harbor Statement and Non-GAAP and Forecast Information This document includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance f ...

ON Semiconductor (ON) recently announced that it will serve as the primary supplier of image sensors for Subaru’s next-generation EyeSight stereo-camera front sensing system. The new image sensor (Hyperlux AR0823AT) will be featured in future vehicle models.The Hyperlux AR0823AT captures clear images in any lighting and ensures both EyeSight stereo camera sensors work synchronously.ON’s Hyperlux AR0823AT sensor will act as the "eyes" for Subaru's AI-powered camera system, helping drivers make safer decision ...

On Semiconductor (ON) is expanding its reach into high-efficiency power and sensing solutions with the introduction of the Treo Platform, an advanced analog and mixed-signal platform based on the Bipolar-CMOS-DMOS process technology at the 65nm node.This versatile platform is designed to support a wide array of applications across automotive, industrial, healthcare, and data center markets, where energy efficiency and high performance are increasingly essential. The Treo Platform enables customers to stream ...

On Semi's results are bottoming, and the future looks bright. Power, analog, and image sensor semiconductor specialist On Semiconductor (ON -1.43%) reported earnings Monday, October 28. The stock reacted very strangely in its aftermath: Initially, the stock fell, then surged to a gain up as much as 5.5%, before pulling back to a mere 1% gain that day. This reaction basically says, investors don't know what to think! However, peering under the hood and listening to the conference call with analysts, there's ...