Automotive saves onsemi as revenue falls

Automotive saves onsemi as revenue falls

Business news |
By Nick Flaherty

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onsemi has seen record revenue in its automotive business, increasing 29% to $4.3bn, over half its total turnover. This came as part of total revenue of $8.2bn, down from $8.3bn last year.

Fourth quarter revenue at onsemi was $2.018bn, down from $2.18bn in the previous quarter and $2.1bn the previous year. The company is predicting a further fall to 1.8bn in the next quarter as it ramps up 200mm SiC production but the market softens.

“Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue. We continue to transform the business by building resilience into our model, enabling us to navigate uncertain market conditions and deliver more predictable and sustainable results,” said Hassane El-Khoury, president and chief executive officer of onsemi.

“Our consistent performance has validated our long-term strategy. Looking ahead, we are driving innovation beyond silicon and silicon carbide with our upcoming analog and mixed signal platform to further our leadership in intelligent power and sensing solutions.”

“Despite challenging market conditions … we are happy with the progress we have made in 2023 and we are now turning to operational improvements in 2024. We expect continued softness across all end markets through inventory digestion and slowing demand,” he said.

The ASG analog and power group revenues fell from $2.8bn to $2.4bn, while the ISG image sensor group grew slightly from 1.2bn to 1.3bn.

The company has been shifting to a fab-lite approach and the move to silicon carbide was key, with a move to larger 200mm wafers. “It was a great year for silicon carbide,” he said. “Design win growth continues to outpace our growth targets.” It shipped $800m of silicon carbide part sin automotive and industrial, which was 25% of the market. It has 600 customers, with 50% of its top ten customers in Asia and it expects European customers to ramp in the second half of 2024.

“200mm wafers are already running through Bucheon in Korea,” he said.

The industrial market started softening six quarters ago and the company started reducing its capacity back then. In automotive the demand is also now softening and the long term agreements allow inventory management he says. Pricing is not changing, but volume shipments are changing as part of the agreements.

“We saw a lot of the softness ahead of our peers and we are managing that, and when the market recovers we will take advantage of that,” said El-Khoury.



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