Core Viewpoint - Onsemi's vertical GaN (vGaN) power semiconductors set new benchmarks for power density, efficiency, and durability in high-energy applications such as AI data centers and electric vehicles, addressing the growing energy demands in these sectors [2][3]. Group 1: Technology and Innovation - The vGaN technology allows for vertical current flow through the semiconductor, enabling higher operating voltages and faster switching frequencies, which leads to energy savings and smaller, lighter systems [2][3]. - Onsemi's vGaN technology is designed to handle high voltages (1200V and above) with exceptional efficiency, reducing losses by nearly 50% in high-end power systems [3][4]. - Compared to conventional lateral GaN devices, vGaN devices are approximately one-third the size, making them ideal for applications requiring high power density and thermal performance [3][4]. Group 2: Applications - Key applications for vGaN technology include: 1. AI Data Centers: Reducing component count and increasing power density for 800V DC-DC converters, significantly lowering rack costs [3]. 2. Electric Vehicles: Smaller, lighter, and more efficient inverters to enhance vehicle range [3]. 3. Charging Infrastructure: Faster, smaller, and more durable chargers [3]. 4. Renewable Energy: Higher voltage handling capabilities and lower energy losses in solar and wind inverters [3][4]. 5. Energy Storage Systems (ESS): Providing fast, efficient, high-density bidirectional power for battery converters and microgrids [4]. 6. Industrial Automation: More compact, cooler, and efficient motor drivers and robotics [4]. 7. Aerospace, Defense, and Security: Higher performance, greater robustness, and more compact designs [4]. Group 3: Competitive Advantage - Onsemi's vGaN technology surpasses traditional silicon-based GaN and sapphire-based GaN devices, achieving higher voltage tolerance, switching frequency, reliability, and durability [4][5]. - The technology's vertical design allows for direct current flow through the chip, resulting in higher current density and operational voltage compared to lateral structures [7][8]. Group 4: Manufacturing and Development - Onsemi has over 130 global patents covering various aspects of vertical GaN technology, indicating significant innovation in materials science and manufacturing processes [8]. - The company recently acquired a GaN wafer manufacturing facility for $20 million, which is expected to enhance its production capabilities in this advanced semiconductor technology [8][9].