ON SEMICONDUCTOR CORP (ON)

ON Semiconductor Corporation, operating under the onsemi brand, is a Delaware-incorporated semiconductor company founded in 1992 that designs and manufactures intelligent power and intelligent sensing solutions serving automotive, industrial, and other markets including AI data centers. The company operates through three reportable segments: Power Solutions Group (PSG, 47% of 2025 revenue), Analog and Mixed-Signal Group (AMG, 38%), and Intelligent Sensing Group (ISG, 15%). PSG offers discrete, module, and integrated semiconductor devices including SiC and silicon products for power conversion in EVs, data centers, and industrial applications; AMG provides analog and mixed-signal solutions such as power management, sensor-interface, and connectivity products via its scalable Treo Platform; and ISG develops CMOS image sensors, image signal processors, and photon-counting technologies for automotive ADAS, robotics, and industrial automation.

By end-market, automotive represents 51% of 2025 revenue, industrial 28%, and other markets (including AI data centers, computing, and consumer applications) 21%. The company sells through both distributors (54% of 2025 revenue) and direct customers (46%), maintaining long-term relationships with key customers under standard warranty terms of two years (one year for image sensors). In 2025, onsemi completed two acquisitions: the SiC JFET technology business from Qorvo for $118.8 million, enhancing its EliteSiC portfolio for AI data center applications, and Vcore power technology rights from Aura Semiconductor for up to $144 million to strengthen its power management offerings.

The company also executed a significant manufacturing realignment program in 2025, incurring $67.1 million in severance costs (affecting ~2,400 employees), $496.0 million in non-cash impairment charges, $103.9 million in other exit costs, and $268.2 million in excess/obsolete inventory charges, alongside $45.4 million in consumables write-offs, as part of efforts to right-size manufacturing capacity and improve gross margins. Financially, the company repurchased approximately 27.9 million shares for $1,375.0 million during 2025 and repaid $375.0 million on its Revolving Credit Facility, leaving approximately $1.5 billion available for future borrowings. onsemi operates a global manufacturing footprint with front-end wafer fabrication facilities in the U.S., Czech Republic, Japan, South Korea, and Malaysia, and back-end assembly/test facilities across Canada, China, Malaysia, the Philippines, Vietnam, and the U.S., supported by design operations across numerous domestic and international locations. The company faces competition from major semiconductor firms including Infineon, STMicroelectronics, Texas Instruments, Analog Devices, NXP, Sony Semiconductor, and Samsung, competing primarily on technology innovation, manufacturing capability, product breadth, and customer relationships across its target high-growth markets.