Founded in 1999 as a spin-off from Motorola\u2019s Semiconductor Components Group, ON Semiconductor\u2014now stylised as onsemi<\/strong>\u2014was built on a legacy of innovation. Its DNA includes not only Motorola’s semiconductor heritage but also technologies inherited through acquisitions of Fairchild, SANYO Semiconductor, Aptina Imaging, AMI Semiconductor, Cherry Semiconductor, and more\u2014many of them storied names in electronics history. This diverse lineage underscores ON Semiconductor\u2019s tech depth across multiple component categories.<\/p>\n\n\n\n Headquartered in Scottsdale, Arizona, the company has grown into a workforce of over 26,000, is ranked among the Fortune 500, and is represented on the Nasdaq-100. <\/p>\n\n\n\n onsemi didn\u2019t just manufacture chips\u2014it transformed into a solutions provider across three business segments:<\/p>\n\n\n\n This portfolio makes ON Semiconductor a foundational enabler across critical trends\u2014EV electrification, industrial connectivity, cloud energy, IoT, and sensor-driven automation.<\/p>\n\n\n\n Q1 FY2025<\/strong> was a challenging quarter, with revenue dropping 22% YoY to $1.45 billion<\/strong>. Automotive sales fell 25%, and industrial slipped, but onsemi held onto a non-GAAP gross margin of around 40%<\/strong>, notably above trough-industry levels. Despite the revenue hit, free cash flow rose by 72% to $455 million<\/strong>, representing 31% of revenue. The company also boosted shareholder returns, sending 66% of that cash back via buybacks.<\/p>\n\n\n\n Despite a sharp YoY revenue decline, onsemi’s Q2 FY2025<\/strong> results exceeded expectations, with revenue ranging between $1.47B and $1.50B<\/strong> and adjusted EPS of 53\u00a2<\/strong>\u2014meeting consensus. Yet, weak automotive demand caused a sharp 11% drop in stock price. Analysts noted stabilising signs but flagged margin recovery as key amid 68% plant utilisation.<\/p>\n\n\n\n CEO Hassane El-Khoury delivered a cautiously optimistic message, noting that the second half of the year would likely be a turnaround point, especially supported by EV-related chip demand. Indeed, onsemi projected Q3 EPS of 54\u00a2\u201364\u00a2<\/strong> and revenue of $1.47B\u2013$1.57B<\/strong>, both slightly above street estimates.<\/p>\n\n\n\n The biggest growth driver? Electric vehicles and silicon carbide (SiC)<\/strong> technology. As EV semiconductor content rises\u2014estimates suggest a jump from ~$160 to over $700 per vehicle by 2025\u2014onsemi\u2019s power- and thermal-efficient chips are in high demand. <\/p>\n\n\n\n To scale for this growth, onsemi is investing aggressively in global manufacturing resiliency. It\u2019s ploughing $2 billion into a new SiC fab in the Czech Republic<\/strong> and expanding in South Korea to reduce overdependence on any one region. <\/p>\n\n\n\n Onsemi also revealed a bold strategic move\u2014a $6.9 billion hostile bid to acquire Allegro MicroSystems<\/strong>\u2014intended to consolidate their footprint in EV-sensing and analogue components. Though the bid was resisted, it sent a clear signal of ambition.<\/p>\n\n\n\n Despite promising signs, onsemi navigates several headwinds:<\/p>\n\n\n\n onsemi is more than chips. It\u2019s empowering vehicles to go farther, factories to run smarter, data centres to manage power better, and sensors to bring automation and safety to life. Its turnaround-focused leadership, financial discipline, global expansion, and bold M&A moves reflect a company thinking long-term while acting decisively.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" A Legacy Forged from Semiconductor Roots Founded in 1999 as a spin-off from Motorola\u2019s Semiconductor Components Group, ON Semiconductor\u2014now stylised as onsemi\u2014was built on a legacy…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-444","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/posts\/444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/comments?post=444"}],"version-history":[{"count":3,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/posts\/444\/revisions"}],"predecessor-version":[{"id":488,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/posts\/444\/revisions\/488"}],"wp:attachment":[{"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/media?parent=444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/categories?post=444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/develop.quarterly.news\/index.php\/wp-json\/wp\/v2\/tags?post=444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nFrom Components to Intelligent Solutions<\/h3>\n\n\n\n
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\n\n\n\nResilience Amid Challenges: Financial and Market Performance<\/h3>\n\n\n\n
\n\n\n\nRepositioned for Growth: EVs, SiC, and Global Reach<\/h3>\n\n\n\n
\n\n\n\nNavigating Risks and Market Realities<\/h3>\n\n\n\n
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\n\n\n\nPower That Adapts<\/em>: onsemi\u2019s Human and Strategic Story<\/h3>\n\n\n\n
\n\n\n\nSummary: Why onsemi Matters\u2014A Balanced Snapshot<\/h3>\n\n\n\n
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