On Semiconductr Stock Price, News & Analysis

onsemi (ON) reported Q2 2024 results with revenue of $1,735.2 million, down 17% year-over-year. GAAP gross margin was 45.2% and non-GAAP gross margin was 45.3%. GAAP diluted EPS was $0.78, while non-GAAP diluted EPS reached $0.96. The company highlighted a free cash flow increase of ~$250 million year-over-year and returned ~$650 million to shareholders through stock repurchases over the last twelve months.

For Q3 2024, onsemi projects revenue between $1,700 to $1,800 million and non-GAAP diluted EPS of $0.91 to $1.03. The company remains focused on driving growth through market share gains, investments in strategic markets, and expanding its portfolio of analog and mixed-signal solutions. onsemi also emphasized strengthening its silicon carbide leadership in automotive, as evidenced by a recent supply agreement with Volkswagen Group.

onsemi has signed a multi-year deal with Volkswagen Group to be the primary supplier of a complete power box solution for its next-generation traction inverter. The solution, based on onsemi's EliteSiC M3e platform, features silicon carbide-based technologies in an integrated module scalable across all power levels. This will enable Volkswagen to customize power needs for different vehicles while maximizing efficiency and performance.

The power box solution can handle more power in a smaller package, reducing energy losses and improving system efficiency. Volkswagen will benefit from onsemi's planned expansion of silicon carbide manufacturing in the Czech Republic, establishing an end-to-end production facility in Europe for the traction inverter power system.

onsemi (Nasdaq: ON) has introduced its latest generation silicon carbide technology platform, EliteSiC M3e MOSFETs, to accelerate the global transition to electrification. This new platform significantly improves energy efficiency for power-hungry applications, with the ability to reduce conduction losses by 30% and turn-off losses by up to 50% compared to previous generations.

The EliteSiC M3e MOSFETs offer the industry's lowest specific on-resistance (RSP) with short circuit capability, important for the traction inverter market. They can deliver approximately 20% more output power in the same traction inverter housing or enable designs with 20% less SiC content, reducing costs and allowing for smaller, lighter, and more reliable systems.

onsemi has also unveiled plans to introduce multiple future generations of silicon carbide at an accelerated pace through 2030, applying Moore's Law concepts to SiC development to meet rising global energy demands.

onsemi (Nasdaq: ON) will announce its second-quarter financial results on July 29, 2024. The report will be released before the market opens, detailing the fiscal period ending June 28, 2024. Following the release, a conference call will be held at 9 a.m. Eastern Time (ET) to discuss the results. Stakeholders can access the live webcast via the 'Investor Relations' section of onsemi's website or listen to a rebroadcast of the call, which will be available for 30 days. Pre-registration is required for those opting to join via teleconference.

onsemi has acquired SWIR Vision Systems to enhance its intelligent sensing product portfolio. SWIR Vision Systems specializes in CQD® short wavelength infrared technology, extending the detectable light spectrum for advanced imaging capabilities. This acquisition will integrate SWIR's patented technology with onsemi's CMOS sensors, creating cost-effective, high-volume SWIR sensors for industrial, automotive, and defense applications.

SWIR technology, traditionally by high costs and complex manufacturing, will now benefit from onsemi's expertise, resulting in more compact and affordable imaging systems. The acquisition will not significantly impact onsemi's near to midterm financial outlook.

onsemi plans to invest up to $2 billion in establishing a silicon carbide (SiC) manufacturing facility in the Czech Republic. This multi-year investment aims to build a vertically integrated SiC production site to meet the rising demand for energy-efficient semiconductors in electric vehicles, renewable energy, and AI data centers. The project, among the largest private sector investments in the Czech Republic, will significantly enhance the region's semiconductor supply chain. The new facility is expected to contribute over $270 million annually to the Czech GDP. The investment aligns with the European Chips Act, aiming to strengthen EU's semiconductor market share and technological capabilities.

onsemi has introduced a new power solution combining their T10 PowerTrench® family and EliteSiC 650V MOSFETs, aiming to enhance energy efficiency in data centers.

This technological innovation addresses the rising energy demands of AI workloads, potentially reducing global data center energy consumption by 10 TWh annually. The new MOSFETs offer superior switching performance, reduced energy loss, and better thermal management, while the T10 PowerTrench Family supports high currents with increased power density.

This solution complies with the Open Rack V3 specifications and automotive standards, indicating robustness and reliability for high-power applications.

onsemi reported first-quarter 2024 results exceeding expectations with revenue of $1.86 billion, GAAP gross margin of 45.8%, and non-GAAP gross margin of 45.9%. The company saw GAAP operating margin of 28.2% and non-GAAP operating margin of 29.0%. Diluted earnings per share were $1.04 for GAAP and $1.08 for non-GAAP. onsemi returned 100% of free cash flow to shareholders through stock repurchases. The company remains focused on growth in the power and sensing technologies sector, positioning itself for long-term success.