ON Semiconductor Corp Investor Day 2026

It is the era of AI, but just like any foundational technology, it is hitting already a physical limitation. Because foundational technology, it is not an invention. It is really not a product. It is a layer upon which all industries after it are going to be built. The problem we have is we have reached that limit. The good thing, though, companies are using technology to break through that limit. You are going to see a new onsemi that is foundationally different in order to break through those limitations, and through that breakthrough, create the opportunity that we will also be talking about today. Because it is not unexpected. Reaching this physical limitation has always happened throughout our civilization, that the further you go with the capabilities of that layer, the faster those limitations start to occur.

We have seen it all the way back to the first foundational technology, as simple as what we consider now the steam engine. It really did not unlock that capability until we figured out how to do machining to make those cylinders. The computing did not really unlock the capability of that foundational technology till decades later with the transistor design. Today, with the era of AI, those technologies are compute, memory, and power. Those are the breakthroughs that we have to have in order to really unlock AI into the potential that it is meant to be. We have seen those limitations. We have seen the first limitation with compute. We have lived through it, and we have unlocked it with advancements in technology and capacity. We have also seen it with memory, where actually, I would argue we are living through it with memory, with advancements that are going to break through.

Neither of these are at the physical layer where power sits. That is the breakthrough that we have to unlock in order for the deployment to not just be contained to a building, but really proliferate into the foundational technology that AI is going to enable across all of our end markets. Because more power is really not enough. We need better power. We need different power than yesterday, where loads were deterministic. It was okay not to be efficient. We had enough of it because the loads were not as intense. That challenge has changed where power is always at a max. It is always on, always at peak, and it has to be perfect, and it has to be distributed, not only centralized. That is where we come in. We solve power. We solve the power of yesterday, we are going to solve the power of tomorrow, which is the power density equation that we're going to be talking about.

As we look at what systems are requiring, all requirements are going in opposite directions, they're not converging. Customers want higher voltage inputs, lower voltage outputs, smaller areas, cooler areas, of course, cost is always a challenge in order to bring deployment. These requirements pull the solutions further apart. It's getting worse. It's getting harder. We all know, whether it's data center, automotive, going from 400 to 800 and above. Automotive already broken through the 800 into 900 volts. The grid needs to upgrade, if any of you cover or invest in grid, you know how quick that happens.

That's going to be pushing that boundary and pulling those requirements for what a capable solution needs to cover. For that, you need a different approach. It is no longer an approach of just technology. We have to change the solution that we provide. Because of that, we had to become a different company in order to deliver on that power density to unlock the value that the new era brings. We've built that company on a strong foundation of technologies that we have had. Over the last six years, we have continued through investments, through capital deployment, and through accelerating what is possible into the company we've become today with a very broad set of capabilities that have delivered the onsemi portfolio of power, sense, and control across all of our end markets.

We will continue expanding those capabilities and that portfolio with the connected compute, as we've announced already. For every investment and every breakthrough we've had, has been very deterministic ahead of an inflection point, whether it was automotive with electrification, the first wave of upgrades of energy infrastructure, all the way into the future of what we expect the Physical AI to be, which is starting to happen today around us in industrial with robotics, I would argue already in automotive with the autonomous vehicle and autonomous driving.

That capability and that company we have built is here to address a growing market across all of these secular growth, from automotive to AI data center and industrial, and the AI halo on top of it, driving that growth and that content, starting with the AI halo in industrial, all the way to a over $200 billion market that we as a company are addressing with the innovative solutions that you'll hear about today. More importantly, all of these markets, no matter what drivers are driving them from a content perspective, are converging on one clear outcome, which is more than half is centered around power and is centered on better power. To solve the power, it is not a new product, it is not a new technology, it is not a new system.

It is a layering effect of a value stack that has to work across top to bottom to deliver on that power density with the efficiency that is required to scale. Starting with a foundation of technology into a deployment of products that extract the capabilities of these technologies, together create these solutions that are going to solve these customer problems and deliver the systems with the value and scale that will solve those generational problems. With that combination of technologies all the way up and down, systems impacting products defining systems, is how we will change the power system paradigm. Taking those requirements that are pulling apart and creating very focused, specific platforms, technologies and products, from devices to the intelligence required, to the interface and the integration that is going to unlock the value of these technologies, products, solutions, all the way to systems.

That's how we will make those requirements that are historically pulling apart converge into a center solution where onsemi plays and onsemi creates, that extracts that value. From high voltage to the intelligence with Treo to EPP, Embedded Power Platform, which I will introduce today. Starting with high voltage, our broad portfolio covers all of the constraints, but also all of the solutions and the required technologies that customers look for. From an unconstraint with silicon power to optimizing for high voltage, optimizing for efficiency, and optimizing now for density. We are the only company that is able to optimize across the complete high voltage stack and deliver sustainable and competitive solutions for our customers to solve the most complex power density problems.

The latest high voltage introduction and breakthrough in a series of breakthrough in high voltage is on the vertical GaN, which we have been able to develop, sample and manufacture, already put in the hands of customers on their boards to solve from automotive to industrial and AI data centers. The intelligence comes from our Treo platform. Again, talking about platform as a foundation to any product that goes on top of it with the innovation that is required across voltages and across deployment with a modular architecture that allows us to very quickly introduce the solutions that are required across all of our end markets, across all of the applications, and the secular growth that we have seen.

On top of high voltage and the intelligence, we cannot forget the integration because all of the benefit of technology is lost if we are not able to extract what that potential would be.