ON Semiconductor Corporation

ON Semiconductor Corporation (doing business as onsemi) is an American semiconductor company that designs, manufactures, and sells intelligent power and intelligent sensing solutions, generating $6.0 billion in revenue in fiscal 2025 across automotive, industrial, and AI data center end-markets. The company is organized into three reportable segments — Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group — and counts among a small handful of semiconductor firms with a full internal silicon carbide crystal-growth capability, a proprietary gallium nitride platform, and a vertically integrated manufacturing footprint spanning eleven front-end fabs and nine back-end facilities worldwide.

This is a story about a cyclical semiconductor franchise in the late innings of a transformation. When Hassane El-Khoury became CEO in December 2020, onsemi was a commodity-leaning supplier with gross margins in the low 30s, an unremarkable product mix, and a sprawling manufacturing network that had been assembled through two decades of acquisitions. Over the five years since, the company has shed four fabs, exited low-margin business lines, rebuilt the product portfolio around the in-house Treo analog platform and silicon carbide, and returned $4 billion to shareholders through buybacks — including $1.4 billion in 2025 alone while the cycle troughed. The revenue line has taken a beating, down 28% from the 2022 peak, but the model underneath it is a different machine than the one that entered the last downturn.

The file turns on a straightforward question: whether the three growth vectors onsemi has planted — AI data center power management, wide-bandgap semiconductors for electric vehicles, and automotive zonal architectures — can compound fast enough to make the 2025 trough earnings look like a cyclical anomaly rather than a structural reset. At roughly $119 per share and a market capitalization near $47 billion, the market is pricing a recovery that is plausible but far from guaranteed.