ON Semiconductor Reports Strong Q2 2023 Revenue and Expands Silicon Carbide Production

Chipmaker ON Semiconductor announced its financial results for the second quarter ending on June 30, 2023. The company reported a revenue of $2.09 billion, reflecting its strong performance in various business segments.
ON SemiconductorRevenue Breakdown:

Power Solutions Group: The Power Solutions Group contributed $1,119.8 million to the overall revenue, representing an impressive 6 percent growth.

Advanced Solutions Group: The Advanced Solutions Group generated $649.5 million in revenue, experiencing a slight decrease of 9 percent.

Intelligent Sensing Group: The Intelligent Sensing Group’s revenue amounted to $325.1 million, exhibiting a notable growth of 4 percent.

Automotive Segment Success: ON Semiconductor’s automotive revenue stood out during the quarter, reaching $1.06 billion, which marked an outstanding 35 percent increase. This robust performance was attributed to the rising demand for electronic components in the automotive industry, as vehicles continue to integrate advanced technologies.

Industrial Revenue Growth: The company’s industrial segment also showed positive growth, with revenue reaching $609.3 million, a solid 5 percent increase from the previous quarter.

Silicon Carbide Expansion: ON Semiconductor’s silicon carbide revenue experienced a staggering growth of nearly 4 times its previous value. This substantial increase prompted the company to consider significant investments to further boost the production of silicon carbide chips. These chips are vital in expanding the range and efficiency of electric vehicles, a segment that is rapidly gaining traction in the market.

Upcoming Projections: Looking ahead, ON Semiconductor anticipates a promising third quarter, with expected revenues ranging between $2.10 billion to $2.20 billion. This indicates the company’s confidence in sustaining its strong performance and capturing new opportunities in the semiconductor market.

CEO’s Statement: Hassane El-Khoury, the CEO of ON Semiconductor, expressed optimism about the company’s future prospects, saying, “Our capacity expansion is creating an opportunity for Onsemi to gain share in silicon carbide by capitalizing on the rapidly accelerating demand for electrification and renewable energy.”

Industry Outlook: The overall positive sentiment within the semiconductor market is also evident in the automotive sector, with NXP, a prominent automotive chipmaker, recently forecasting robust third-quarter revenue and profit. This indicates a positive outlook for the automotive industry and its sustained demand for advanced semiconductor solutions.

ON Semiconductor’s exceptional performance in Q2 2023 and its strategic investments in silicon carbide technology position the company favorably to meet the growing demand for electrification and renewable energy solutions in the future.