About ON Semiconductor Corp

ON Semiconductor Corporation provides intelligent power and intelligent sensing solutions with a primary focus towards automotive and industrial markets to help its customers solve challenging problems and create cutting-edge products for a better future. The company operates under the onsemi brand. The company’s intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers efficient fast-charging systems and propels sustainable energy for the highest efficiency solar strings, industrial power and storage systems. The company’s intelligent power solutions for the automotive industry allow its customers to exceed range targets. The company’s intelligent sensing technologies support the next generation industry, allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible. Segments The company operates three segments: the Power Solutions Group (PSG), the Advanced Solutions Group (ASG), and the Intelligent Sensing Group (ISG). PSG This segment’s products include analog products; SiC products; discrete products; MOSFET products; power module products; Isolation products; memory products; gate driver products; and standard logic products. ASG This segment’s products include analog products; ASIC products; ECL products; foundry products / services; gate driver products; and LSI products. ISG This segment’s products include actuator drivers; complementary metal oxide semiconductor (CMOS) image sensors; image signal processors; and single photon detectors. Business Strategy The company is designing products in highly-differentiated markets focused on customer needs while optimizing its manufacturing footprint to support growth and maintain gross margins through efficiencies and new product development. Revenue-Generating Activities The company generates revenue from the sale of semiconductor products to distributors and direct customers. The company also generates revenue, to a much lesser extent, from product development agreements and manufacturing services provided to customers. The company’s ability to offer a broad range of products, combined with its global manufacturing and logistics network, provides its customers with single source purchasing. Products and Technology PSG PSG offers a wide array of analog, discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification and voltage regulation functions. The trends driving growth within the company’s end-user markets are primarily higher power efficiency and power density in power applications, the demand for greater functionality, and faster data transmission rates in all communications. The advancement of existing volt electrical infrastructure, electrification of power train in the form of EV/HEV, higher trench density enabling lower losses in power efficient packages and lower capacitance and integrated signal conditioning products to support faster data transmission rates significantly increase the use of high-power semiconductor solutions. The increase in the use of WBG MOSFETs and diodes, including Silicon carbide (SiC) and Insulated-gate bipolar transistor (IGBT), is further expanding the use of semiconductor products. ASG ASG designs and develops analog, mixed-signal, Power Management ICs and Sensor Interface devices for a broad base of end-users in the Automotive, Industrial, Compute and Mobile end-markets. The company implements a platform-based design approach to rapidly proliferate product portfolios. ASG offers technology that provides its customers system-level differentiation, such as multi-phase controllers, gate drivers, DC-DC converters, AC-DC converters, ultrasonic sensors, inductive sensors, audiology digital signal processors, analog front ends, Bluetooth Low Energy, wired connectivity and more. ISG ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM and SPAD arrays, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets. The company’s broad range of product offerings delivers excellent pixel performance, sensor functionality and camera systems capabilities in which high quality visual imagery is becoming increasingly important to its customers and their end-users, particularly in automotive and factory automation and in applications powered by AI. Customers The company sells its products to distributors and direct customers for ultimate use in a variety of end-products in different end-markets. In general, the company has maintained long-term relationships with its key customers and its sales agreements are renewable periodically and contain certain terms and conditions with respect to payment, delivery, warranty and supply. During 2023, the company continued to enter into long-term supply agreements with certain strategic end-customers, which generally include minimum purchase commitments or amended existing terms based on mutual agreements. The company generally warrants that products sold to its customers will, at the time of shipment, be free from defects in workmanship and materials and conform to its approved specifications. Distributors Sales to distributors accounted for approximately 52% of the company’s revenue in 2023. The company had one distributor whose revenue accounted for approximately 12% of the total revenue for the year ended December 31, 2022. The company’s distributors resell its products to OEMs, contract manufacturers, and other end-customers. Sales to distributors are typically made pursuant to agreements that provide return rights and stock rotation provisions permitting limited levels of product returns. Direct Customers Sales to direct customers, accounted for approximately 48% of the company’s revenue in 2023. Large multi-nationals and selected regional OEMs, which are significant in specific markets, form the company’s core direct customers. Markets Product Development The company focuses on innovation to create intelligent power and sensing technologies that solve the most challenging customer problems. The company’s product development efforts are directed towards the following: powering the electrification of the automotive industry with the company’s intelligent power technologies that allow for lighter and longer-range electric vehicles and enable efficient fast-charging systems; propelling the sustainable energy evolution with the company’s intelligent power technologies for the highest efficiency solar strings, industrial power and storage systems; enhancing the automotive mobility experience with the company’s intelligent sensing technologies with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible; and enabling automation and data exchange (Industry 4.0) with the company’s intelligent sensing technologies for smarter factories and buildings. End-Markets The company serves a broad base of end-user markets, with a primary focus towards automotive and industrial. The company’s principal end-markets, the estimated percentage (based in part on information provided by its distributors) of the company’s revenue generated from each end-market during 2023, and sample applications for its products. Other includes the end-markets of computing, consumer, networking, communication, etc. Sales, Marketing and Distribution The company has global distribution centers in China, the Philippines and Singapore. Global and regional distribution channels further support its customers' needs for quick response and service. The company offers global applications support from its technical information centers and solution engineering centers, allowing for applications that are developed in one region of the world to be instantaneously available throughout all other regions. Research and Development For the year ended December 31, 2023, the company’s research and development expenses were $577.3 million. Patents, Trademarks, Copyrights and Other Intellectual Property Rights The company markets its products under worldwide trademarks, including the ON Semiconductor, ON, onsemi, and various product names and logos, and, in the United States and internationally, it relies primarily on a combination of patents, trademarks, copyrights, trade secrets, employee and non-disclosure agreements and licensing agreements to protect its IP. As of December 31, 2023, the company held patents with expiration dates ranging from 2024 to 2043. Competition PSG’s primary competitors include Infineon Technologies AG (Infineon), STMicroelectronics N.V. (STMicroelectronics), Wolfspeed Inc., Texas Instruments Incorporated (TI) and Nexperia BV. Competitors for certain of ASG's products and solutions include TI, Analog Devices, Inc., Infineon, STMicroelectronics, Renesas Electronics Corporation, Monolithic Power Systems Inc. and NXP Semiconductors N.V. (NXP). Competitors for certain of ISG's products and solutions include Sony Semiconductor Manufacturing Corporation, Samsung Electronics Co., Ltd., and Omnivision Technologies Inc. Government Regulation The company is subject to numerous United States and foreign laws and regulations, including, without limitation, tariffs, trade sanctions, trade barriers, trade embargoes, regulations relating to import-export control, technology transfer restrictions, the International Traffic in Arms Regulation promulgated under the Arms Export Control Act (ITAR), the Foreign Corrupt Practices Act (FCPA), and the anti-boycott provisions of the U.S. Export Administration Act. The company’s operations are in material compliance with applicable trade regulations relating to import-export control, technology transfer restrictions, ITAR, FCPA, the anti-boycott provisions of the U.S. Export Administration Act, and similar applicable laws and regulations. Environmental, Social and Governance Initiatives The company proactively complies with the Responsible Business Alliance (RBA) Code of Conduct, which is aimed at eliminating forced labor, slavery and human trafficking and conflict minerals, pursuant to its involvement with the Responsible Minerals Initiative. History ON Semiconductor Corporation was incorporated in 1992 under the laws of the state of Delaware.

Country
Industry:
Semiconductors and related devices
Founded:
1992
IPO Date:
04/28/2000
ISIN Number:
I_US6821891057
Address:
5701 North Pima Road, Scottsdale, Arizona, 85250, United States
Phone Number
602 244 6600

Key Executives

CEO:
El-Khoury, Hassane
CFO
Trent, Thad
COO:
Wang, Wei-Chung