ON Semi appears to have entered a recovery phase, recording earnings that exceeded market expectations in the first quarter of 2026. In particular, it is analyzed that the expansion of demand for AI data centers drove revenue growth and contributed to the improvement in overall performance.

According to the earnings report released by ON Semi on the 7th, first-quarter revenue was $1.513 billion, exceeding the median of the company's guidance. During the same period, the operating profit margin on a non-GAAP basis was 19.1%, and diluted earnings per share were recorded at $0.64.

By segment, the AI data center business stood out. As adoption in power supply chains expanded, revenue in this sector more than doubled compared to the same period last year. The company explained that the related business grew by over 30% quarter-on-quarter alongside the recovery in demand.

Growth trends continued in the automotive and industrial sectors as well. Silicon carbide-based power semiconductors were utilized in the transition to 900V electric vehicle architectures, leading to expanded cooperation with major automakers. In addition, with the start of mass production shipments of automotive Ethernet solutions, the response to demand related to Software Defined Vehicles (SDVs) has also been strengthened.

In terms of profitability, the effects of operational efficiency improvements were reflected. Operating profit increased by 10% compared to the same period last year, recording double the sales growth rate. The company stated that it enhanced profitability through improvements in the cost structure and optimization of its product portfolio.

In the semiconductor industry, the demand for power semiconductors continues to structurally increase, driven by the convergence of expanded investment in AI infrastructure and rising requirements for power efficiency. In particular, as data center power management and the transition to electric vehicles proceed simultaneously, companies possessing related technologies are showing signs of improved performance.

ON Semi expects to continue its growth trajectory based on these market conditions. The company stated that its mid-to-long-term growth foundation will be maintained as semiconductor demand expands across the automotive, industrial, and AI data center sectors. It also added that it plans to continue its shareholder return policies based on stable cash flow.