“ON semiconductor announced the company’s new name “onsemi” (ON Semiconductor) and a refreshed brand as the next step in the company’s evolution to establish itself as a leading provider of smart power and sensing technologies. With continued focus on the automotive and industrial end markets, ON Semiconductor has strengthened its innovative strategy to drive disruptive innovation and contribute to a sustainable ecosystem of high-growth megatrends such as automotive functional electronics, advanced safety, alternative energy and factory automation.
ON Semiconductor announced the company’s new name “onsemi” (ON Semiconductor) and a refreshed brand as the next step in the company’s evolution to establish itself as a leading provider of smart power and sensing technologies. With continued focus on the automotive and industrial end markets, ON Semiconductor has strengthened its innovative strategy to drive disruptive innovation and contribute to a sustainable ecosystem of high-growth megatrends such as automotive functional electronics, advanced safety, alternative energy and factory automation.
ON Semiconductor President and CEO Hassane El-Khoury recently introduced ON Semiconductor’s overall strategic goals for smart power and sensing technology to Chinese media.
ON Semiconductor President and CEO Hassane El-Khoury
General policy: focus on sustainable development
Hassane said that governments around the world are now paying attention to sustainable development strategies, among which the focus is on the automotive and industrial sectors. The important reason is that the two account for 2/3 of greenhouse gas emissions, which is also the focus of ON Semiconductor today – not only ON Semiconductor’s corporate operations will achieve zero emissions by 2040, and ON Semiconductor’s electric vehicle and industrial customers can rely on its technology to better achieve sustainable development.
Due to the main focus of the Chinese media this time, Hassane emphasized ON Semiconductor’s strategy for China. He emphasized that ON Semiconductor has a complete and unified strategic plan. Therefore, in China, it will also rely on global technology and services to adapt to China’s industrial and automotive industries. Industrial Development. The focus includes products and services in the fields of automotive functional electronics, autonomous driving, machine vision, factory automation, 5G and cloud infrastructure power management.
Hassane also said that ON Semiconductor expects to establish joint laboratories with more strategic Chinese customers to create more intelligent and differentiated solutions. At the same time, Hassane also emphasized that the manufacturing base in China will be optimized to match the development trend in China. “The most important point is that we will sign long-term supply agreements with strategic customers in China, so that when our customers need to expand production capacity or demand, we can guarantee them a long-term and stable supply.” “We will vigorously Support China’s 2030 carbon peak and 2060 carbon neutrality goals,” Hassane said firmly.
Smart power and sensing technologies develop together
Since the second industrial revolution, society has entered the era of electrification, power electronics technology has been applied to this day, and continues to develop, and always remain one of the most important energy sources, and today’s sustainable development market has new ideas for power technology. need.
Perception technology is a new demand born with the rise of artificial intelligence in recent years, including new applications such as Industry 4.0 and autonomous driving, which require intelligent perception technology to provide richer data.
According to the forecast data provided by OMDIA, the compound annual growth rate of smart power supply in the next five years will reach 6%, and the growth rate of the intelligent sensing market will reach 10%.
“ON Semiconductor hopes that customers can achieve complementary development through intelligent power and intelligent sensing technology.” Hassane explained that customers can better control voltage, current and temperature through intelligent power technology, which can help intelligent sensing achieve higher energy efficiency, thereby reducing heat dissipation requirements. , so that the product cost, volume, power consumption and weight are lower, and these requirements are more strongly reflected at the edge.
ON Semiconductor’s Key Market Targets
Hassane said that the overall strategic goal of ON Semiconductor is to achieve the general trend of sustainable development through semiconductor technology. Therefore, for many market segments such as industry and automobiles, ON Semiconductor mainly focuses on the market perspective related to sustainable development strategies to explore common ground. place.
For the field of 5G and cloud technology facilities, the increase in power density has made the demand for energy-efficient power supplies more intense. In each server, ON Semiconductor products can even go up to as much as $300.
For the industrial market, ON Semiconductor focuses on three aspects including factory automation, energy infrastructure and electric vehicle charging piles. This includes both power management technology, power conversion technology, and machine vision. ON Semiconductor can provide a number of differentiated products including advanced technologies such as CMOS sensors, SiC, and IGBTs.
A glimpse of the application scenarios of ON Semiconductor products in industrial automation
For the automotive market, ON Semiconductor focuses on the two major development directions of automation and electrification.
Among them, for automation, ON Semiconductor engineers analyzed more than 4,000 failure modes to ensure absolute reliability of automotive-grade CMOS cameras.
“On average, nine lives are saved every hour,” Hassane emphasized. For example, he said that the actual test results of ON Semiconductor’s 8-megapixel automotive CMOS sensor show that it can still detect pedestrians at a distance of 185 meters, which is 100 times the ability of the human eye.
According to ON Semiconductor’s report, in each L2+ vehicle, ON Semiconductor’s product content can reach $200 to $1,000.
For electrification, ON Semiconductor’s portfolio of power management products can exceed $750.
“The powertrain and advanced safety will jointly promote the growth of Electronic content in vehicles.” Hassane judged, “ON Semiconductor’s comprehensive solutions from gasoline vehicles to new energy vehicles can promote more than 30 times the increase in electronic content in vehicles.”
ON Semiconductor’s comprehensive automotive solutions
ON Semiconductor to step up operational changes
ON Semiconductor’s customers are highly diverse, with the top 20 customers accounting for only 35% of the company’s total revenue. Therefore, ON Semiconductor’s sales strategy also relies on direct sales and agents, of which 40% comes from direct sales and 60% comes from agents.
Hassane also announced that ON Semiconductor’s business model will gradually change from traditional IDM to a flexible combination of internal and external foundry. “ON Semiconductor’s smart power supply and smart sensing technology will continue to increase investment in internal production capacity, but other areas may rely more on foundry, including fabs and packaging and testing plants, to achieve better cost structure and Return on capital,” Hassane said. ON Semiconductor will shift the focus of the fab to 300mm and gradually withdraw from 200mm and other backward fabs. In fact, after ON Semiconductor received GF’s 300mm fab in 2019, it began to sell 200mm fabs one after another.
It is for this reason that ON Semiconductor’s capital expenditure plan will increase from 6% to 12% in the next two years. On the one hand, it is to expand the production capacity of 300mm wafer fabs, and the other is to improve the supply chain of silicon carbide. At present, ON Semiconductor has signed an acquisition agreement with GTAT to supplement the company’s layout in silicon carbide epitaxy.
“We are working closely with customers to guide our capacity expansion and strategic technology development, not blindly capitalizing on expansion,” Hassane emphasized.
Hassane, who joined ON Semiconductor in December 2020, previously served as CEO at Cypress and made a series of reforms at Cypress to bring Cypress into the 3.0 strategy. After Cypress was acquired by Infineon, Hassane chose to leave and joined ON Semiconductor. In the more than half a year of ON Semiconductor, the company has changed the Logo, name and Slogan. More importantly, it has established a clearer strategic goal of sustainable development, focusing on the genes of intelligent power supply and intelligent sensing technology, and constantly exploring market potential. .
“As a problem solver and an innovation pioneer, I will combine my own strengths with ON Semiconductor’s business. ON Semiconductor has set ambitious strategic goals, and we will focus on implementing and executing them one by one, and ultimately these strategies will be transformed into service to customers, and promote their business improvement,” Hassane concluded.