ON Semiconductor Corp Dossier
Qualitative Analysis
Business overview
ON Semiconductor Corporation, operating under the onsemi brand, is a leading global supplier of intelligent power and sensing technologies. The company's comprehensive portfolio spans silicon, silicon carbide (EliteSiC), and gallium nitride (GaNexus) power technologies, alongside intelligent sensing solutions and analog/mixed-signal platforms. onsemi primarily targets high-growth megatrends in the automotive, industrial, and AI data center infrastructure markets, addressing critical transitions such as vehicle electrification, advanced driver assistance systems (ADAS), sustainable energy grids, and high-efficiency power delivery for next-generation AI server racks.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Optimizing the manufacturing footprint, rationalizing fabs, and maximizing internal utilization while maintaining flexibility for external capacity.
Expected impact: Aims to drive structural gross margin expansion toward the long-term target of 53% and operating margins of 40% as utilization rates recover.
Deliberate pruning of low-margin, volatile, and non-core business lines to focus resources on high-value intelligent power and sensing solutions.
Expected impact: Planned exit of approximately $900 million of non-core revenue by the end of 2026 to structurally improve overall corporate margins.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquisition of rights to Vcore power technologies and associated IP licenses to strengthen onsemi's power management portfolio and accelerate its ability to address the complete power tree in AI data center applications.
Financial impact: Financial terms were not disclosed.
Strategic Partnerships
To explore expanding production of gallium nitride (GaN) power devices using Innoscience's 200mm GaN-on-silicon process, combining onsemi's packaging and system integration expertise with Innoscience's high-volume manufacturing.
Terms: Non-binding agreement targeting a projected $2.9 billion addressable market by 2030, with potential value in the hundreds of millions of dollars for both companies.
Deepening the system-level integration of onsemi's EliteSiC silicon carbide technology into Geely's vehicle platforms, supporting next-generation 900V electric vehicles built on Geely's SEA-S architecture.
Terms: Not explicitly disclosed
Accelerating NIO's transition from 400V to 900V high-voltage architectures using onsemi's EliteSiC M3e technology across multiple new models, including the flagship SUV ES9.
Terms: Not explicitly disclosed
Establishing a wide-bandgap (WBG) semiconductor research center in New York focused on SiC crystal quality, defect reduction, and process scalability.
Terms: onsemi is investing $8 million as part of a broader $20 million partnership with Stony Brook University and Empire State Development.