onsemi Aligns Business Groups to Expand Product Portfolio and Accelerate Growth

Rhea-AI Summary

onsemi (ON) forms Analog and Mixed-Signal Group (AMG) led by Sudhir Gopalswamy to expand power management and sensor interface devices, targeting a $19.3 billion market. Simon Keeton promoted to lead Power Solutions Group (PSG) after delivering over $4 billion in revenue last year.

Market Research Analyst

The formation of the Analog and Mixed-Signal Group (AMG) at onsemi represents a strategic initiative aimed at capturing a significant portion of the $19.3 billion total addressable market in the automotive, industrial and cloud-end markets. This move indicates an aggressive push to diversify and deepen the company's product offerings in power management and sensor interface devices. The reorganization is a clear signal to the market of onsemi's ambition to enhance its competitive edge and market share.

From a market perspective, the emphasis on automotive and industrial segments aligns with the global trends towards electrification and automation, which are expected to drive demand for advanced power management solutions. The cloud-end market focus is timely, considering the exponential growth in data centers and cloud computing services, which require efficient and reliable power solutions. The integration of AMG, combining the strengths of the former Advanced Solutions Group (ASG) and Integrated Circuits Division (ICD), could streamline operations and foster innovation, potentially leading to increased market agility and improved customer response times.

Financial Analyst

The promotion of Sudhir Gopalswamy to lead the newly formed AMG, alongside Simon Keeton's elevation within the Power Solutions Group (PSG), is indicative of onsemi's emphasis on leadership with a strong track record. Keeton's leadership in achieving over $800 million in silicon carbide business revenue in 2023 is particularly noteworthy, as this material is critical for high-efficiency power electronics and is gaining traction in the electric vehicle market. This could be a harbinger for future revenue growth in a high-potential sector.

The reorganization's financial implications will be clearer once onsemi publishes its first quarter 2024 earnings with the new business segment structure. Investors and analysts will be looking for improved profitability and revenue growth as a result of this strategic realignment. The provision of comparable historical data is crucial for assessing the impact of the reorganization on the company's financial health and operational efficiency.

Technological Industry Expert

The technological implications of onsemi's AMG focus on power management ICs, sensor interfaces and communications products are significant. High efficiency power tree solutions are increasingly critical for a wide range of applications, from automotive to cloud computing. The mention of gate drivers, DC-DC converters and multi-phase controllers indicates a commitment to the core technologies that enable high-performance power systems. Furthermore, the attention to emerging technologies like single-pair Ethernet and Bluetooth® Low Energy (Bluetooth LE) solutions underscores onsemi's investment in connectivity, a key component in the Internet of Things (IoT) and industrial automation.

AMG's leadership in sensor interface solutions, such as inductive and ultrasonic sensing, is poised to meet the growing demand for sophisticated sensing technologies in medical applications and autonomous vehicles. The integration of these technologies into onsemi's portfolio can facilitate the development of more advanced, integrated systems, potentially leading to a stronger market position in the intelligent power and sensing technology sectors.

The Analog and Mixed-Signal Group will deliver industry-leading technologies that enable full system solutions for automotive, industrial and cloud end-markets

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- onsemi (Nasdaq: ON) today announced the formation of the Analog and Mixed-Signal Group (AMG) which will be led by newly appointed group president, Sudhir Gopalswamy. The group will be focused on expanding onsemi’s portfolio of industry-leading power management and sensor interface devices to unlock an additional $19.3 billion total addressable market and accelerate the company’s growth in the automotive, industrial and cloud-end markets.

Additionally, Simon Keeton has been promoted to group president of the Power Solutions Group (PSG). His leadership has been instrumental in delivering more than $4 billion in total revenue last year, while ramping a profitable silicon carbide business that achieved over $800 million in revenue in 2023.

“This organizational alignment builds on our strength in delivering highly differentiated and optimized solutions focused on customer needs,” said Hassane El-Khoury, president and chief executive officer of onsemi. “With Simon and Sudhir’s industry expertise and proven track records, we are setting the foundation for further growth and leadership in intelligent power and sensing technologies.”

AMG specializes in the development of a range of power management ICs and high precision, low power sensor interfaces and communications products. It positions onsemi to become a full suite provider of high efficiency power tree solutions with an expanded portfolio of gate drivers, DC-DC converters, multi-phase controllers, eFuses and more. The group will continue to extend its leadership in automotive- and industrial-focused sensor interface and communication solutions such as inductive, ultrasonic and medical sensing, as well as single-pair Ethernet and Bluetooth^® Low Energy (Bluetooth LE) solutions.

AMG combines the former Advanced Solutions Group (ASG) and Integrated Circuits Division (ICD), previously a part of the PSG. Gopalswamy will oversee both AMG and Intelligent Sensing Group (ISG), which together drove nearly $4 billion in revenue for the company last year.

This strategic move accelerates onsemi’s position and will add even more system value for customers by powering every architecture with analog and mixed-signal technologies that enable advanced functionality, higher performance and faster time to market.

onsemi will publish its first quarter 2024 earnings based on the reorganized business segments and provide comparable historical data.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner and smarter world. onsemi is recognized as a Fortune 500^® company and included in the Nasdaq-100 Index^® and S&P 500^® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312591699/en/

Krystal Heaton

Director, Head of Public Relations

onsemi

(480) 242-6943

Krystal.Heaton@onsemi.com

Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

(602) 244-3437

investor@onsemi.com

Source: onsemi

Who will lead the Analog and Mixed-Signal Group (AMG) at onsemi?

Sudhir Gopalswamy will lead the Analog and Mixed-Signal Group (AMG) at onsemi.

What is the total addressable market onsemi aims to unlock through the Analog and Mixed-Signal Group (AMG)?

onsemi aims to unlock an additional $19.3 billion total addressable market through the Analog and Mixed-Signal Group (AMG).

Who has been promoted to lead the Power Solutions Group (PSG) at onsemi?

Simon Keeton has been promoted to lead the Power Solutions Group (PSG) at onsemi.

How much revenue did Simon Keeton deliver last year, and what business did he ramp up profitably?

Simon Keeton delivered more than $4 billion in revenue last year, while ramping up a profitable silicon carbide business that achieved over $800 million in revenue in 2023.

What will the Analog and Mixed-Signal Group (AMG) focus on developing?

The Analog and Mixed-Signal Group (AMG) will focus on developing power management ICs, high precision sensor interfaces, and communication products.