ON Semiconductor Corporation (NASDAQ:ON) Citi's 2024 Global TMT Conference Call September 4, 2024 3:00 PM ET Company Participants Hassane El-Khoury - Chief Executive Officer Thad Trent - Chief Financial Officer Conference Call Participants Chris Danely - Citi Chris Danely Thanks for coming, everyone. Thanks for being here on this afternoon of the Annual Citi TMT Conference. I'm Chris Danely, your friendly neighborhood semiconductor analyst. It's our pleasure next to have ON Semi, the dream team. We have Has ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: ASML produces cutting-edge machines used to make semiconductors. The Dutch government announced Friday broader restrictions on exports of semiconductor-making machines produced by sector heavyweight ASML, aligning itself with US curbs on technology at the center of trade tensions with China. The measure, which will take effect on ...

Core Viewpoint - ON Semiconductor is well-positioned to benefit from future technological advancements, particularly in autonomous vehicles, AI server energy solutions, and robotics, supported by a strong financial position that allows for quick adaptation to growth opportunities [1][2]. Company Overview - ON Semiconductor is a significant player in the semiconductor industry, focusing on intelligent power and sensing technologies, serving automotive, industrial, and consumer electronics markets [2]. - The company emphasizes sustainability and efficiency across its global manufacturing facilities, which include 7 front-end and 10 back-end facilities across 9 countries [2]. Product Lines - ON's product lines are categorized into three groups: Power Solutions (PSG), Advanced Solutions (ASG), and Intelligent Sensing (ISG), each critical for various applications in automotive, industrial, and IoT devices [3][4]. Market Opportunities Electric Vehicles (EVs) - The EV market is rapidly growing, with over 40 million registered EVs globally and a 35% year-over-year sales increase in 2023, indicating significant future growth potential for ON's products [5]. Data Centers - ON develops innovative power supply solutions for high-density servers, essential for AI applications, with data center power demand expected to rise significantly by 2030 [7]. Smart Buildings - The smart building market is projected to grow at a 25% CAGR, reaching a $570 billion opportunity by 2030, with ON positioned to provide critical sensors and connectivity solutions [8]. Recent Developments Government Relations - ON plans to invest $2 billion in the Czech Republic to enhance semiconductor output, supported by government incentives potentially covering up to $550 million of the investment [10]. Robotics - The global autonomous mobile robot (AMR) market is growing at a 22% CAGR, with ON's products positioned to meet various needs in robotics applications [10]. Financial Highlights - From FY 2020 to FY 2023, ON experienced a revenue CAGR of 16.2%, although FY 2023 saw a slight revenue decrease of 0.88% compared to the previous year [11]. - Net income has shown a CAGR of 110.5%, with a 14.8% increase in FY 2023 compared to FY 2022, despite a decrease in net income when excluding a prior capital asset impairment [11]. - ON's balance sheet is strong, with cash and short-term investments totaling $2.6 billion and a current ratio of 3.02, indicating good financial health [11]. Valuation - A discounted cash flow (DCF) model estimates ON's fair value at $115 per share, suggesting a potential 64% increase from its current price, based on conservative growth estimates [12][13].

Market Recovery and Demand Outlook - The company maintains an L-shaped recovery outlook, emphasizing the need for steady end-demand recovery rather than short-term backlog improvements [3] - Stabilization in automotive markets is observed, with some areas showing flat to positive growth, while energy infrastructure has seen strong recovery [5] - Industrial markets remain soft, with structural changes made in previous years contributing to current results [5] Inventory Management and Customer Behavior - The company has been aggressive in inventory management, starting earlier than peers, but customer behavior varies widely, with some taking inventory down to low single-digit weeks [7] - Long-term agreements (LTSAs) provide visibility into demand and pricing, with some customers now seeking LTSAs to secure future supply [11][16] Pricing Strategy and Product Value - The company does not follow a cost-plus pricing model, focusing instead on value-based pricing, with recent pricing actions in 2022 setting a baseline [9] - New product generations offer cost efficiencies and higher margins, with customers benefiting from conversion to newer, more efficient products [10] Silicon Carbide and EV Market Dynamics - Silicon carbide penetration in EVs is at 6%, with significant growth potential as most new designs are now silicon carbide-based [18][21] - The company sees lumpy growth in EV adoption, driven by factors like charging infrastructure and battery technology advancements [19] - Hybrid vehicles, particularly range extenders, offer significant content opportunities, with China leading in this segment [25] Commoditization and Substrate Supply - The company does not view silicon carbide as a commodity, emphasizing the importance of device and package technology over substrate availability [29] - Internal substrate production provides flexibility, allowing the company to navigate geopolitical risks and supply chain challenges [31] Vertical Integration and Strategic Wins - The company's vertical integration, from substrate to system-level solutions, has been key to winning major contracts like VW, highlighting its capability to deliver high-value products [32][33] Gross Margin and Structural Improvements - The company has set a new gross margin target of 53%, driven by utilization improvements, the roll-off of dilutive contracts, and the monetization of divested fabs [39][41] - New products are designed to meet or exceed corporate average margins, contributing to favorable mix and long-term margin expansion [41]

ON Semiconductor Corporation (NASDAQ:ON) Deutsche Bank 2024 Technology Conference August 29, 2024 1:00 PM ET Company Participants Hassane El-Khoury - CEO Thad Trent - CFO Conference Call Participants Ross Seymore - Deutsche Bank Ross Seymore We're very pleased to have ON Semi up on stage. We have both the CEO, Hassane El-Khoury, as well as the CFO, Thad Trent. I'll be asking questions of them. I don't know if we're doing the raising your hand if you have questions. If you do, feel free to raise your hand. S ...

It has been about a month since the last earnings report for ON Semiconductor Corp. (ON) . Shares have added about 2.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. onsemi Q2 Earnings Beat ...

Seeking stocks with market-crushing potential? These companies could be smart portfolio additions."The true investor welcomes volatility. A wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses." This quote from Berkshire Hathaway's legendary CEO Warren Buffett highlights the opportunities that can be created when stocks see substantial short-term valuation pullbacks.Even with the broader market marching higher this year, there's still plenty of oppor ...

证券研究报告 | 公司动态点评 2024 年 08 月 07 日 安森美半导体（ON.O） 24Q2 营收符合指引，看好大客户订单助推 Q3 盈利能力改善 | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------|-------|-------|-------|-------|-------|---------------------------------|------------| | 财务指标 | 2022A | 2023A | 2024E | 2025E | 2026E | 增持（首次评级） | | | 营业收入（百万美元） | 8,326 | 8,253 | 7,637 | 8,365 | 9,233 | 股票信息 | | | 增长率 yoy（%） | 23.5 | -0.9 | -7.5 | 9.5 | 10.4 | | | | 归母净利润（百万美元） | 1,902 | 2,184 | 1,864 | 2,212 | 2,604 | 行业 | 半导体产品 | | 增长率 yoy（%） | 88.4 | ...

ON Semiconductor Corp. (ON) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this semiconductor components maker have returned -6.8%, compared to the Zacks S&P 500 composite's -5.9% change. During this period, the Zacks Semiconductor - Analog and Mixed industry, which ON Semiconductor Corp. falls in, has lost 12.1%. The key question now is: What could be t ...

It's usually a good idea to buy semiconductor stocks when their sales are about to hit a cyclical bottom.The market warmed to ON Semiconductor's (ON -5.49%) second-quarter earnings report, and the stock has now significantly outperformed Nvidia over the last month, with a 14.2% increase compared to a 5.4% decline for the stock market darling (as of this writing). The question is why and whether it can continue.A cyclical stock to buyON Semiconductor services two highly cyclical end markets, namely automotiv ...