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🐂 ON — Company Profile (Educational)

Educational site, not investment advice. Market cap / stock price / quarterly numbers change quickly, so we don't write them. Use SEC + Yahoo Finance links below to check current data.

📌 Basic Info

Field Value Source
Primary business Power semiconductors + analog (SiC / IGBT / power management) — leader in auto EV + industrial power 10-K
Founded / HQ 1999 (spun off from Motorola) / Phoenix, Arizona, USA wiki
CEO Hassane El-Khoury (joined 2020/12, formerly Cypress CEO) company announcement
Primary listing NASDAQ: ON —
Fiscal year Calendar year (Jan 1 - Dec 31) SEC EDGAR

💡 Real-time market cap / share price / segment revenue / SiC capacity progress: see SEC primary + IR links below

🏭 Industry Chain Coordinates (Part 1-C6 framework)

Upstream (Who ON depends on)

Supplier What flows Key dependency
Own + acquired fabs (East Fishkill from GF; Rožnov pod Radhoštěm, Czech SiC fab — wafer + EPI + 8" line; Brno Czech is design center, not a fab) In-house capacity (IDM model) core dependency = self-supply SiC (unlike pure fabless)
Wolfspeed (WOLF) + GTAT / Coherent (COHR) SiC substrate historically third-party, now shifting to in-house boule growth
ASML / AMAT / KLAC / LRCX Semiconductor equipment tied to fab capex cycle

Downstream (Who depends on ON)

Customer What flows Concentration
Auto OEMs (TSLA / Volkswagen / BMW / Hyundai / Chinese NIO Li Auto Xpeng) EV powertrain SiC modules auto ~50%+ of revenue; key customers like TSLA
Industrial (solar inverters / energy storage / industrial motors) SiC + IGBT power modules industrial ~25% of revenue
Data center power (NVDA ecosystem) Data center PSU SiC new growth engine

Competitors

  • SiC direct: Infineon (IFNNY) · STMicro (STM) · ROHM (6963.T) · Wolfspeed (WOLF, midstream SiC but weak post-bankruptcy reorg) · Chinese firms (BYD Semi / CRRC Times)
  • IGBT / Si power: Infineon (dominant in auto IGBT) · STMicro · Mitsubishi Electric · Fuji Electric
  • Analog / MCU: TXN · ADI · NXP (NXPI) — partial product-line overlap

💼 Business Model + Value Capture (Part 1-C7 lens)

  • Revenue mix: Auto ~50%+ / Industrial ~25% / Other (comms + computing + consumer) the rest; SiC growth clearly outpaces the company average
  • Gross margin: Historically 40-50%; GM compressed during SiC capacity ramp; long-term target trending toward 50%+
  • Pricing power: SiC LTSAs (Long-Term Supply Agreements) lock volume + price with OEMs — strong (within signed LTSAs)
  • Replacement difficulty: Auto SiC high (2-3 year qualification), but Infineon / STM have comparable tech and customers run multi-source strategies

(For segment revenue / SiC LTSA backlog, see latest SEC 10-Q)

🏰 Moat Assessment (Part 3-C2 Buffett 5-step lens)

Type Strength (0-1) Reasoning
Brand 0.4 B2B power semi; recognized by customers
Switching cost 0.6 Auto SiC qualification is long, but customers run multi-source strategies
Network effect 0.2 No classic network effect
Scale + cost 0.5 Own 200mm SiC fab + Rožnov Czech SiC fab (Brno is design center) + GF East Fishkill acquisition

Total: 1.7 / 4 → medium moat (benefits from auto EV cycle, but homogeneous competition with Infineon / STM)

⚠️ Key Invalidation Triggers (Part 3-C5 anti-thesis lens)

Monitor; if triggered, re-evaluate thesis:

  • Trigger 1 (quarterly): Auto EV sales YoY growth < 20% (ON has large auto exposure; tightly tied to EV penetration)
  • Trigger 2 (event): TSLA / Volkswagen / leading Chinese EVs develop in-house SiC (TSLA has partially internalized; trend accelerating)
  • Trigger 3 (medium probability): Infineon / STM concentrated SiC ramp → price war
  • Trigger 4 (quarterly): SiC gross margin < 40% for 2+ quarters (oversupply / price pressure)
  • Trigger 5 (low probability): BEV → PHEV mainstream shift (SiC has much lower content per PHEV)

📚 SEC Primary Public Filings (DYOR)

Live quote: Yahoo Finance ON

Educational · Numbers change, the method does not · Make investment decisions based on your own research + risk tolerance