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

ON Semiconductor Corporation (NASDAQ:ON) Q4 2022 Earnings Conference Call February 6, 2023 9:00 AM ET Company Participants Parag Agarwal - Vice President of Investor Relations & Corporate Development Hassane El-Khoury - President & Chief Executive Officer Thad Trent - Chief Financial Officer Conference Call Participants Ross Seymore - Deutsche Bank Vivek Arya - Bank of America Christopher Danely - Citigroup Toshiya Hari - Goldman Sachs Harsh Kumar - Piper Sandler Christopher Caso - Credit Suisse Matthe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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) (State or other jurisdiction of incorpora ...

ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ:ON) - **Date**: January 5, 2023 - **Participants**: - Hassane El-Khoury - President and CEO - Thad Trent - CFO - Harlan Sur - JPMorgan Analyst Key Industry Insights Automotive and Industrial Markets - The company has a strong focus on automotive and industrial markets, which are expected to outgrow the general market due to trends like electrification and Advanced Driver Assistance Systems (ADAS) [4][6] - The design win funnel in automotive has been a significant driver of future growth, with expectations of continued growth in these segments [4][6] - The automotive segment is projected to grow at a compound annual growth rate (CAGR) of 17%, with electrification driving a 30% CAGR in xEV production over the next three years [21][22] Demand Trends and Market Dynamics - Demand trends began to decelerate in Q2 2022, particularly in consumer-focused markets, but automotive and industrial segments remain strong, accounting for about two-thirds of revenue [5][6] - The company has proactively managed inventory and production levels to navigate market fluctuations, with a focus on long-term supply agreements (LTAs) that provide stability [8][9][20] Long-Term Supply Agreements (LTAs) - LTAs are legally binding agreements that ensure pricing and volume commitments from customers, providing a stable revenue outlook even in fluctuating demand environments [9][10][20] - The company has increased its LTAs to a total of $14 billion, which enhances strategic partnerships and visibility into customer demand [13][14] Financial Performance and Projections Revenue and Margin Outlook - The company anticipates exiting non-core revenue streams, which have lower gross margins, to focus on higher-margin products, with expectations of improved overall margins as a result [45][46] - The exit from non-core products is expected to be more pronounced in the second half of 2023, allowing for a reallocation of resources to higher-value segments [46] Silicon Carbide Technology - ON Semiconductor has seen significant growth in its silicon carbide (SiC) revenues, with a target of reaching $1 billion in SiC revenues in 2023 [23][24] - The company is leveraging its extensive experience in power semiconductors to enhance its SiC offerings, which are critical for automotive and industrial applications [28][29] Additional Insights Industrial Market Trends - The industrial segment is driven by long-term trends in energy infrastructure, factory automation, and medical applications, which are expected to remain resilient even in weaker macroeconomic conditions [40][42][44] - The company has established LTAs with eight of the top ten energy renewable companies, indicating strong market positioning [43] Competitive Advantages - ON Semiconductor's leadership in IGBT and MOSFET technologies provides a competitive edge in the power semiconductor market, facilitating cross-selling opportunities and system-level solutions for customers [28][33][36] Manufacturing and Capacity Management - The company is focused on internalizing substrate supply for SiC to ensure reliability and support customer ramps, with a goal of achieving majority internal supply by the end of 2023 [39] Conclusion - ON Semiconductor is well-positioned for growth in the automotive and industrial sectors, supported by strategic LTAs, a strong design win pipeline, and a focus on high-margin products. The company is navigating market challenges effectively while leveraging its technological expertise to drive future revenue growth.

ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ:ON) - **Date**: December 6, 2022 - **Participants**: - Hassane El-Khoury - CEO - Thad Trent - CFO - Joe Moore - Morgan Stanley Industry Insights Automotive Sector - **Strength in Automotive**: The automotive sector is experiencing strength due to the electrification of vehicles, which is expected to continue for the next decade as more OEMs introduce electrification platforms [4][5] - **Autonomous Driving**: Increased penetration of cameras in vehicles is driving growth in the automotive business, particularly in autonomous driving technologies [4] - **Long-Term Supply Agreements (LTSA)**: The company has established LTSAs with OEMs, which are expected to provide stability and predictability in demand [16][22] Industrial Sector - **Mixed Performance**: The industrial side shows mixed results, with softness in consumer-tied segments like power tools, while factory automation and renewable energy remain strong [5] - **Growth Areas**: Continued growth is anticipated in industrial automation and renewable energy, linked to automotive trends [5] Consumer and Compute Markets - **Softness Observed**: The consumer and compute markets are experiencing softness, consistent with trends observed by peers in the industry [5] Business Strategy Portfolio Optimization - **Exiting Non-Value Businesses**: The company has reduced $277 million in business deemed non-sustainable, with an additional $400 million to $450 million expected to be exited [6][9] - **Criteria for Sustainability**: The focus is on maintaining businesses that provide differentiated value and margin expansion [8] Margin Expectations - **Gross Margin Target**: The company aims to maintain a gross margin of 48% to 50%, despite headwinds from new investments in silicon carbide [11][39] - **Silicon Carbide Growth**: Significant investments are being made in silicon carbide, with expectations of achieving scale by the end of 2023 [11][33] Market Dynamics Long-Term Supply Agreements - **Structure of LTSA**: LTSAs are structured as take-or-pay agreements, providing a framework for volume and pricing commitments [16][17] - **Duration and Enforceability**: These agreements typically extend four to five years, with some lasting up to eight years, and are legally binding [17][18] Customer Behavior - **Proactive Engagement**: Proactive customers are engaging in LTSAs to ensure supply chain stability, moving away from traditional inventory practices [22][24] Technological Advancements ADAS and EVs - **ADAS Market Share**: The company holds an 80% market share in ADAS, with expectations for increased camera content in vehicles [30][46] - **Silicon Carbide Leadership**: The company aims for $1 billion in silicon carbide revenue, supported by LTSAs and significant capacity expansion [31][32] Competitive Differentiation - **Imaging Technology**: The company’s imaging technology is tailored for automotive applications, providing advantages in high dynamic range and LED flicker mitigation [46][49] - **Efficiency in Silicon Carbide**: The combination of device and packaging efficiency in silicon carbide products is a key competitive advantage [50] Conclusion - **Strategic Execution**: The company remains committed to its strategic plan, focusing on exiting non-value businesses, maintaining margins, and leveraging long-term agreements to navigate market challenges [13][39] - **Future Outlook**: Continued growth is anticipated in the automotive and industrial sectors, driven by technological advancements and strategic partnerships [4][5][11]