ON Semiconductor (ON) Status Update summary

Strategic overview and platform launch

• Introduced the Treo Analog and Mixed Signal Platform, targeting automotive, industrial, and AI data center markets with a $36 billion total addressable market (TAM).

• Treo leverages proprietary BCD65 process technology on a 300mm fab, enabling integration of high voltage, high-density digital, and high-performance analog on a single chip.

• Platform aims to deliver up to 70% gross margins and $1 billion in revenue by 2030, with initial products sampling and revenue expected in the first half of next year.

• Focused on system-level solutions by complementing core strengths in silicon carbide, silicon power, and image sensing.

• Treo’s modular SoC-like architecture enables rapid product development and customization, reducing time to market to 6–9 months for new devices.

Technology differentiation and competitive positioning

• Treo breaks traditional trade-offs by offering 65nm node with up to 90V support and high-temperature operation, unmatched by competitors.

• Integration of bipolar, CMOS, and DMOS in a single process allows for unprecedented product flexibility and efficiency.

• Platform supports a wide range of products, from power management ICs and sensor interfaces to communication devices and ASSPs.

• Competitive advantage is rooted in both advanced process technology and a unique SoC-like design approach.

• Cost basis is favorable due to the ability to do more on the 65nm node, targeting devices that benefit from this technology.

Financial and operational impact

• Treo products are expected to be accretive to company gross margin targets, with product margins ranging from the 50s to 70s percentile.

• R&D intensity remains efficient and stable due to the platform’s modular design, with most investment already made.

• Brownfield investments in the East Fishkill fab provide high return on invested capital, with most CapEx already behind.

• Revenue ramp will be gradual, starting small in 2025 and scaling toward the $1 billion target by 2030.

• Product pipeline is broad, with initial SKUs spanning LDOs, voltage translators, AFEs, ultrasonic sensors, and DC-to-DC converters.