Onsemi: Intense Competition Expected in Automotive Power Semiconductors and Sensors

 

Onsemi

[Posting: 2025.06.06]

The automotive semiconductor manufacturer Onsemi was originally spun off from Motorola’s semiconductor division in 1999. Through a series of mergers and acquisitions, the company has grown into a specialized provider of power semiconductors, sensors, and analog ICs for automotive applications, recording a revenue of $7 billion in 2024.

Onsemi has expanded its product portfolio by acquiring major companies such as AMI, Sanyo Semiconductor, Aptina Imaging, Fairchild Semiconductor, SWIR Vision Systems, and Qorvo's SiC JFET division. It is now in fierce competition with global players like Infineon, STMicroelectronics, and Renesas in the automotive sector.

Recently, the company has been heavily investing in the production of next-generation automotive power semiconductors based on SiC (Silicon Carbide), expanding its production from 6-inch to 8-inch wafers. Among its global sites, Bucheon, South Korea, has emerged as a key manufacturing hub.

By collaborating with foundry partners like TSMC and UMC for analog and power IC production, Onsemi is reinforcing its product lineup through a hybrid IDM + foundry model.

In addition to automotive power semiconductors, Onsemi is also expanding its global market share in sensors. The key questions for the company's future will be how quickly it can reach its target of $10 billion in product revenue, which companies it may target for future M&A, and whether it can survive in the global SiC power race, not only against Chinese rivals but also against the worldwide Top 3 players.


πŸ” Onsemi Company Analysis Report (as of 2025)

🏒 Company Overview

Onsemi is a global leader in power semiconductors and sensor solutions, providing energy-efficient technologies to a broad range of industries including automotive, industrial automation, cloud infrastructure, medical, and IoT.

πŸ›️ Company History

  • 1999: Spun off from Motorola’s semiconductor division; ON Semiconductor founded

  • 2000: Listed on NASDAQ

  • 2016: Acquired Fairchild Semiconductor

  • 2021: Rebranded from “ON Semiconductor” to “onsemi”

  • 2024: Acquired SWIR Vision Systems to enhance sensor capabilities

πŸ’΅ 5-Year Revenue and Operating Margin

YearRevenue (B$)Operating Income (B$)Operating Margin (%)
20205.2550.67412.8%
20216.7400.83312.4%
20228.3260.8259.9%
20238.2530.7088.6%
20247.0820.70810.0%

πŸ“Œ 2024 saw a slight drop in revenue but a recovery in operating margin through efficient cost control.

🧩 Product Portfolio

  • Power Devices: SiC MOSFETs, IGBTs, diodes, power modules

  • Power Management ICs: AC-DC/DC-DC converters, gate drivers, power protection

  • Sensors: CMOS image sensors, ToF, LiDAR, SWIR sensors

  • Connectivity Solutions: BLE, Zigbee, Sub-GHz wireless SoCs

  • Custom ASICs: Mixed-signal and high-voltage custom designs

⚙️ Key Applications

  • Automotive: EV powertrain, ADAS, battery management

  • Industrial Automation: Robotics, inverters, smart factory

  • Cloud Infrastructure: Server power conversion and energy efficiency

  • Medical Devices: Diagnostic image sensors

  • Consumer IoT: Low-power wireless and sensors

🏭 Manufacturing and Foundry Strategy

Onsemi operates as an IDM (Integrated Device Manufacturer) with internal fabs and limited foundry outsourcing.

🌍 Major Fabrication Sites

RegionCountry/CityWafer Size
USAEast Fishkill, Oregon300mm, 200mm
South KoreaBucheon150mm, 200mm
JapanGunma, Aizu-Wakamatsu200mm
CzechiaRoΕΎnov150mm
Malaysia, Philippines, VietnamAssembly & Test-

Onsemi also outsources selected products to TSMC, UMC, and possibly GlobalFoundries, DB HiTek.

πŸ‘₯ Employees and Salary

  • Employee count (2024): ~26,000

  • Average salary (USA): ~$99,459 (≈130M KRW)

  • Key roles: SoC/ASIC design, power electronics, quality/process engineering, software development

⚔️ Main Competitors

CompetitorFocus AreaNotes
Infineon (Germany)Power semiconductors, SiC, MCUsGlobal #1 in power devices
STMicroelectronicsPower, sensors, MCUsStrong industrial + automotive focus
Texas InstrumentsAnalog, power managementHigh-margin analog IC leader
NXP (Netherlands)Automotive SoC, BMS, RadarADAS and in-vehicle connectivity
Renesas (Japan)MCUs, power ICsStrong in automotive MCUs
ROHM (Japan)SiC power semiconductorsRapid SiC development
OthersVishay, Diodes Inc., AllegroCompeting in niche segments

Onsemi directly competes with Infineon, ST, TI, and NXP in EV, industrial, and AI server power markets.

🀝 Key M&A Activity

YearTarget CompanyPurpose / Focus Area
2008AMI SemiconductorExpanded mixed-signal and ASIC portfolio
2011SANYO SemiconductorBroadened analog and power product lines
2014Aptina ImagingCMOS image sensor technologies
2016Fairchild SemiconductorMajor power semiconductor acquisition
2018SensL TechnologiesAcquired SiPM, SPAD, and LiDAR sensor tech
2019Quantenna CommunicationsHigh-performance Wi-Fi (discontinued in 2022)
2024SWIR Vision SystemsCQD-based SWIR imaging for industrial & automotive
2025Qorvo’s SiC Division (UnitedSiC)Strengthened SiC power device roadmap

These acquisitions reflect Onsemi’s strategic shift toward EVs, ADAS, and high-performance sensing.

πŸ“Œ Summary Infographic

CategoryDetails
Founded1999 (Spin-off from Motorola)
HQ LocationScottsdale, Arizona, USA
2024 Revenue$7.08B
2024 Operating Margin10.0%
Product FocusSiC, Power ICs, Sensors, Connectivity
Key MarketsAutomotive, Industrial, Cloud, Medical, IoT
Manufacturing ModelIDM + Select Foundry Partners (TSMC, UMC, etc.)
Employees~26,000
Avg. Salary$99,459 (U.S. average)
Key CompetitorsInfineon, ST, TI, NXP, Renesas, ROHM
Notable M&AsFairchild, Aptina, UnitedSiC, SWIR Vision

✅ Conclusion

Onsemi is a rising power in the field of energy-efficient power electronics and sensors, with a strong IDM base and a clear focus on high-growth sectors like electric vehicles, AI server power systems, and smart sensing. Its recent strategic acquisitions, including UnitedSiC and SWIR Vision Systems, further enhance its competitive position against global giants such as Infineon, STMicro, and Texas Instruments.

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