ON Semiconductor Corporation

“We offer intelligent power and intelligent sensing solutions that drive electrification, energy efficiency, safety, and automation in automotive, industrial, and other end-markets, including AI data center.”

“As of December 31, 2025, the Company was organized into three operating and reportable segments consisting of PSG, AMG and ISG.”

“As of December 31, 2025, we were organized into three operating and reportable segments: the Power Solutions Group ("PSG"), the Analog and Mixed-Signal Group ("AMG") and the Intelligent Sensing Group ("ISG").”

“Distributors$1,650.7 $1,191.2 $425.5 $3,267.4”

“Sales to direct customers accounted for approximately 46%, 47% and 48% of our revenue in 2025, 2024 and 2023, respectively.”

“AMG delivers advanced analog and mixed-signal technology through our Treo Platform. The Treo Platform is a single, scalable technology platform supporting a wide voltage range, high temperature and an ever-evolving SoC, like architecture”

“Hong Kong$1,634.8 27.3 %$1,779.3 25.1 %”

“PSG$2,805.1 46.8 %$3,348.2 47.3 %$(543.1)”

“PSGAMGISG 2025 Revenue (%)47%38%15%”

“Some of the Company's Japanese subsidiaries utilize Japanese yen as their functional currency.”

“On October 27, 2025, we completed the acquisition of rights to Vcore power technologies, including associated intellectual property licenses, from Aura Semiconductor enhancing our power management portfolio. The total purchase consideration is up to $144 million”

“On January 14, 2025, we completed the acquisition of the Silicon Carbide Junction Field-Effect Transistor ("SiC JFET") technology business from Qorvo US, Inc., and certain of its subsidiaries, for $118.8 million in cash.”

“Our vertically integrated SiC manufacturing strategy enhances supply assurance, cost competitiveness, and device performance.”

“AI data center operators are focused on reducing energy consumption. We believe we have one of the most comprehensive portfolios of products and technologies for this market to address the complete power tree”

“partially offset by increased revenue of $15.1 million in other end-markets which include AI data centers.”

“We intend to continue these actions during 2026.”

“We continue to optimize and right-size our manufacturing footprint to align our capacity with our long-term outlook, while focusing on generating efficiencies that result in meaningful gross margin expansion and operating cash flows.”

“primarily as a result of the decline in sales volume, underutilization of our manufacturing facilities, the related impact of unfavorable product mix”

“products that are commercially viable may not have an immediate impact on our revenue or contribute to our operating results in a meaningful way until at least a few years after they are introduced into the market.”

“Our weighted average interest rate was 2.1% and 1.8% per annum in 2025 and 2024, respectively.”

“Various jurisdictions have developed or are developing climate change-based laws or regulations that could cause us to incur additional direct costs for compliance, as well as indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us.”

“We incurred total severance costs and related benefit expenses of $67.1 million related to the termination of approximately 2,400 employees. Additionally, we recorded non-cash impairment charges of $496.0 million”

“some of our facilities are single source facilities that only produce one of our end-products, and a disruption at any such facility would materially delay or cease production of the related product.”

“if customers reduce, delay or cancel orders, we may incur excess or obsolete inventory charges.”

“There can be no assurance that we will win competitive bid selection processes, known as "design wins," for new products.”

“the fixed costs and other operating expenses associated with these facilities and arrangements will not be fully absorbed, resulting in higher average unit costs and lower gross profits”

“The semiconductor industry is characterized by rapidly evolving technologies, innovation, short product life cycles, evolving regulatory and industry standards and certifications, changing customer needs, wide fluctuations in supply and demand and frequent new product introductions.”

“impacts of other macroeconomic events, such as valuation concerns related to AI technologies, continued inflation and labor market concerns, public health crises, geopolitical tensions or conflicts and risks, climate change and other severe weather and natural disasters”

“Generally, our agreements with suppliers of raw materials impose no minimum or continuing supply obligations, and we obtain our raw materials and supplies from a large number of sources. However, shortages could occur in various essential raw materials”

“the contingent risks associated with transferring our existing operations to an acquirer, as is the case with several transition services being provided in connection with some of our prior divestitures”

“labor shortages, disruptions to ports and other shipping infrastructure, border closures and/or other travel or health-related restrictions could, depending on the magnitude of such effects on our manufacturing activities”