ON Semiconductor (ON) FY2025 results: revenue $6.0 billion, down 15.3% on the year

ON Semiconductor Corporation, which operates under the onsemi brand, was incorporated in Delaware in 1992. It sells what it calls intelligent power and intelligent sensing products, into automotive, industrial and other end markets including AI data centres. At the end of 2025 it was organised into three operating and reportable segments: the Power Solutions Group with 47% of 2025 revenue, the analog and mixed analog-and-digital group with 38%, and the Intelligent Sensing Group with 15%.

What each segment makes

The Power Solutions Group holds silicon carbide products, silicon carbide junction field-effect transistor products, discrete products, MOSFET products, power module products and vertical gallium nitride. The analog and mixed analog-and-digital group holds analog products, application specific integrated circuits, logic and isolation products, non-volatile memory products, inductive sensing and gate driver products. The Intelligent Sensing Group holds actuator drivers, CMOS image sensors, image processors, single photon detectors, ultrasonic and short-wavelength infrared sensing, and indirect time of flight sensors.

Where the products go

In automotive, the power technologies go into drivetrain electrification, which the filing says allows lighter and longer-range electric vehicles, and into fast-charging systems, while the sensing technologies go into advanced safety applications. The company argues that integrating sensing into its power products raises efficiency, allowing lower temperature operation and less cooling while saving cost and weight, and that its power products deliver power with less die per module, giving higher range for a given battery capacity.

In industrial, the power technologies go into solar strings and industrial power. In medical they extend the life of personal diagnostic devices such as continuous glucose monitors. The sensing technologies go into factory and building automation and into robotics and humanoids. In the other market, which includes AI data centre products, the power technologies address energy efficiency, and the company states it believes it has one of the most comprehensive portfolios for the complete power tree in that market.

The year's activity

Two acquisitions closed in 2025. On 14 January 2025 the company completed the acquisition of the silicon carbide junction field-effect transistor technology business from Qorvo US and certain subsidiaries for $118.8 million in cash, which it says complements its EliteSiC power portfolio in the Power Solutions Group and addresses energy efficiency and power density in the AC-DC stage of power supply units for AI data centres. On 27 October 2025 it completed the acquisition of rights to Vcore power technologies, including associated intellectual property licences, from Aura Semiconductor, for a total consideration of up to $144 million with $7 million paid in cash at close, $72 million payable on acceptance and delivery of specified products, and the remaining $72 million contingent on the achievement of certain milestones through 2030.

In the first quarter of 2025 the company announced a manufacturing realignment programme, restructuring to line up internal manufacturing capacity with what it expects to need over the long term. Severance and related benefit costs of $67.1 million covered the termination of approximately 2,400 employees. It recorded non-cash impairment charges of $496.0 million on previous investments in manufacturing equipment at certain facilities, other charges of $103.9 million covering exit costs, accelerated depreciation and contract termination, $268.2 million of excess and obsolete inventory charges, and $45.4 million on consumables, manufacturing supplies and unfulfilled purchase commitments. The company states it continues to evaluate workforce composition and manufacturing capacity and footprint.

Where the work is done and how it is sold

Domestic design operations sit in Arizona, California, Idaho, New York, Oregon, Pennsylvania, Rhode Island and Texas, with foreign design operations in Belgium, Canada, China, the Czech Republic, Germany, India, Ireland, Israel, Italy, Japan, South Korea, the Philippines, Romania, Singapore, the Slovak Republic, Slovenia, Switzerland, Taiwan and the United Kingdom. Front-end wafer fabrication runs in the United States, the Czech Republic, Japan, South Korea and Malaysia, and back-end assembly and test in Canada, China, Malaysia, the Philippines, Vietnam and the United States.

Revenue comes primarily from selling semiconductors to distributors and direct customers, with a much smaller amount from product development agreements. Sales to distributors were approximately 54% of revenue in 2025, against 53% and 52% in the two years before, and one distributor accounted for approximately 11% of total revenue in 2025 and 10% in 2024. Distributors handle fulfilment and resell to original equipment manufacturers, contract manufacturers and other end customers, typically under agreements giving return rights and stock rotation provisions that permit limited product returns.

From ON Semiconductor's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 9 February 2026: read the full 10-K.