onsemi is an American semiconductor manufacturer headquartered in Scottsdale, Arizona. Listed on Nasdaq, the company supplies components that convert, distribute and control electrical power, as well as sensors designed to monitor the surrounding environment. Less visible than designers of processors for computers or smartphones, it plays a role in essential functions within vehicles, industrial equipment and energy infrastructure. Its corporate website is onsemi.com.
From Motorola to a focus on power semiconductors
The company was founded in 1999 through the spin-off of part of Motorola’s semiconductor operations. Long known as ON Semiconductor, it adopted the onsemi brand in 2021. Its development combines building on an industrial legacy in electronic components with acquisitions that gradually broaden its technologies and markets.
The acquisition of Fairchild Semiconductor, completed in 2016, notably strengthened its portfolio of power components. In 2021, the acquisition of GT Advanced Technologies brought expertise in silicon carbide crystal production. This transaction supports a strategy of industrial integration: gaining greater control over a critical raw material for certain components, rather than relying solely on external suppliers. This direction is accompanied by a renewed focus on the automotive and industrial sectors.
Converting energy and sensing the environment
onsemi’s activities include power transistors, diodes, power management circuits and image sensors. These components address distinct but complementary needs: limiting losses during electrical power conversion, controlling motors, powering electronic systems or producing the images needed for certain driver assistance and machine vision functions.
In electric vehicles, its products can be used in traction inverters, onboard chargers and voltage converters. Silicon carbide offers benefits for applications requiring high voltages and good energy efficiency. However, it does not systematically replace silicon: the choice depends on cost, power and the specific constraints of each piece of equipment.
In industry and energy, onsemi serves applications including electric drives, automation, charging stations and power conversion associated with renewable energy. Its business model is based on component design and in-house manufacturing capabilities, supplemented by partners. Qualification, reliability and continuity of supply are particularly important in these markets, where development cycles are often long.
What next?
onsemi’s trajectory will depend in particular on the pace of vehicle electrification and industrial investment. Silicon carbide is an area of development, but it also exposes the company to the costs of expanding capacity and to intense competition. The challenge will be to turn its technological investments into profitable production volumes while adapting output to cyclical demand. The energy efficiency gains offered by its components will therefore need to be accompanied by cost control and rigorous industrial execution.