SCOTTSDALE, Ariz. – May 22, 2023 – onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, hosted its latest Analyst Day in New York City on May 16, 2023 under the theme “Accelerating the Journey Towards a Sustainable Ecosystem." The company highlighted how its transformation over the last two years drove onsemi’s industry outperformance and revealed its strategic plans for the acceleration of the company’s growth through to 2027. The event followed onsemi’s first-quarter results, which beat Wall Street expectations.
onsemi is doubling down on its premium businesses of intelligent power, with a focus on silicon carbide (SiC), silicon power (IGBTs, FETs) and power ICs, and intelligent sensing for the automotive and industrial sectors. onsemi’s accelerated financial model forecasts revenue growth of 10% to 12% CAGR for 2022 through 2027, growing at 3x the forecasted semiconductor market growth, in addition to a 2027 gross margin target of 53% driven by a focus on new products and its SiC ramp at accretive margins. The company is also moving from its Fab Liter strategy, which created a flexible, low fixed-cost manufacturing footprint, to a Fab Right strategy that optimizes the asset footprint for efficiencies and best-in-class return on invested capital (ROIC).
“Despite the current uncertain market conditions, onsemi continues to exceed expectations and accelerate its growth by concentrating on megatrends in its key markets of automotive and industrial to support a sustainable ecosystem," said Hassane El-Khoury, president and CEO of onsemi. “As the many customer testimonials illustrate, we continue to build out our leadership in SiC, a crucial element on the journey to net zero, with onsemi EliteSiC technology. I want to thank our employees for their dedication and perseverance that has enabled us to achieve greater efficiency, performance and sustainability."
onsemi highlighted several recent announcements in the automotive and energy sectors, providing insight into how the company continues to strengthen its position in key areas. onsemi remains committed to creating solutions for the sustainable ecosystem by providing pivotal components for vehicle electrification, ADAS, energy storage and charging as well as autonomous mobile robots and machine vision.
Among the highlights onsemi noted:
In addition to the many global customer announcements, the company also celebrated news with Penn State University to establish a campus research center focused on silicon carbide crystal growth and for being added to Barron’s List of 100 Most Sustainable U.S. Companies for the sixth consecutive year. During the presentations, onsemi noted other major recent announcements, including the launch of its Elite Power Simulator and agreements with BMW AG , VW Group, HMC/KIA and Mercedes-Benz . The on-demand recording of Analyst Day presentations can be found here.