The growth potential of silicon carbide semiconductors in the energy sector, including the automotive industry, is gradually being reflected in tangible results. As announced by Onsemi, the profit target for SiC lamps is expected to reach 53% by 2027, and a growth strategy focused on SiC is emerging.

Onsemiconductor announced on the 30th (Korean time) that it held an Analyst Day in New York, USA, with the theme of ‘Accelerating the Journey to a Sustainable Ecosystem.’

Onsemi revealed how it has achieved industry-leading performance through innovation over the past two years and its strategic plan for accelerating growth through 2027. The event followed the company’s Q1 earnings announcement, which beat Wall Street expectations.

ON Semi is doubling its premium business in intelligent power, focusing on intelligent sensing for the silicon carbide (SiC), silicon power (IGBTs, FETs), power ICs, automotive, and industrial sectors. ON Semi’s accelerated financial model projects revenue growth of 10-12% CAGR from 2022 to 2027, which is three times the growth of the semiconductor market.

It also forecasts that the total profit target for 2027 will reach 53% by focusing on new products and SiC lamps with increasing profits. Onsemi is transitioning from a Fab Liter strategy that creates flexible, low-fixed-cost manufacturing space to a Fab Right strategy that optimizes asset space for efficiency and best-in-class return on invested capital (ROIC).

Onsemi highlighted its latest announcements in the automotive and energy sectors, providing insights on how to strengthen its position in key areas. Onsemi provides key components for vehicle electrification, ADAS, energy storage and charging, autonomous robots, and machine vision, while focusing on developing solutions for a sustainable ecosystem.

In its announcement, ON Semiconductor recaps key past achievements, including: a new strategic collaboration with Kempower to provide advanced SiC MOSFETs and diodes in DC fast charging solutions; Sineng Electric’s integration of ON Semiconductor’s EliteSiC MOSFETs and IGBT-based high-density power integrated modules in a utility-scale solar inverter and industry-first 200kW energy storage system; a new long-term supply agreement (LTSA) with premium electric mobility brand ZEEKR to supply SiC power devices to improve powertrain efficiency in smart electric vehicles (EVs); and the launch of the Hyperlux family of image sensors, which provide a critical element in the development of Advanced Driver Assistance Systems (ADAS) and Autonomous Driving (AD) solutions.

“Despite the current uncertain market environment, ON Semiconductor continues to exceed expectations and accelerate growth by focusing on megatrends in key automotive and industrial markets to support a sustainable ecosystem,” said Hassane El-Khoury, CEO of ON Semiconductor. “As evidenced by numerous customer testimonials, ON Semiconductor’s EliteSiC technology continues to build on our leadership in SiC, a critical element in the journey to net zero.”

In addition to the global customer announcements, Onsemi also celebrated the establishment of a campus research center focused on SiC crystal growth with Penn State University and its selection to Barron's 100 Most Sustainable Corporations in America for the sixth consecutive year. He also discussed recent key announcements, including the launch of the Elite Power Simulator, and agreements with BMW AG, VW Group, HMC/KIA, and Mercedes-Benz. An on-demand recording of the Analyst Day presentation can be found here.