Core Insights - ON Semiconductor has transformed into a focused power and sensing company, emphasizing silicon carbide and high-voltage power devices, aligning with sectors like EV powertrains and industrial automation [1] Company Positioning - ON Semiconductor occupies a unique position between large competitors like STMicroelectronics and Infineon and smaller players like Wolfspeed, benefiting from U.S.-based manufacturing and vertical integration in silicon carbide [3] Strategic Advantages - The U.S.-based manufacturing footprint provides ON with a strategic edge as supply chain security becomes a priority for governments and OEMs, aligning with EV policies and CHIPS Act incentives [4] - Onshoring reduces geopolitical risks for customers and enhances long-term supply assurance, which in turn strengthens ON's pricing power and OEM relationships [7] Financial Outlook - With a market cap of approximately $22.5 billion, ON is projecting revenues of $6.3 billion in 2026 and $7 billion in 2027, alongside $2.9 billion in cash and $800 million in debt [8] - The company has authorized $6 billion for buybacks, suggesting an effective enterprise value of around $13 billion by the end of 2027 [8] - ON is trading at nearly 2x 2027 price-to-sales after buybacks, with a forward P/E of about 20x, expected to drop to roughly 13x by 2027, indicating potential for multiple expansion through execution [8]