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 device.

• Platform aims to deliver $1 billion in revenue by 2030, starting from zero, with initial products sampling now and revenue expected in the first half of next year.

• Treo products are expected to achieve gross margins up to 70%, supporting the company’s gross margin expansion initiatives.

• The platform enables rapid product development cycles, with new devices moving from specification to silicon samples in six to nine months.

Technology differentiation and competitive positioning

• Treo breaks traditional trade-offs by offering 65nm process technology with up to 90V support and Automotive Grade 0 reliability.

• The SoC-like modular architecture allows for high integration, customization, and reuse of IP blocks, enabling quick adaptation to customer needs.

• Competitive advantage is rooted in both the advanced process node and the design approach, not just the technology itself.

• No other competitor offers the same breadth of voltage and process node integration as Treo.

• The platform is designed to complement existing product strengths, such as silicon carbide and power devices, enhancing system-level solutions.

Financial impact and operational efficiency

• Treo is accretive to company gross margin targets, with product margins ranging from the 50s to 70s percentile, depending on adoption and product mix.

• Utilization of existing brownfield investments, particularly the East Fishkill 300mm fab, supports best-in-class return on invested capital.

• Most CapEx investment for Treo is already completed, with future CapEx intensity expected to decrease.

• R&D intensity remains efficient due to the platform’s modular design, with incremental costs decreasing as more IP is developed.

• Revenue ramp will be gradual, with initial contributions in 2025 and a CAGR supporting the $1 billion target by 2030.