Is onsemi profitable in 2026?

Barely. FY2025 net income was $123M on $5.995B revenue (about 2% net margin), and Q1 2026 posted a GAAP diluted loss of $(0.08) per share despite revenue rising 4.7% YoY to $1.513B, with gross margin at 38.5% versus 45-49% in 2022-23.

Could AI replace onsemi's business?

No. onsemi makes physical power and sensing semiconductors (SiC, GaN, image sensors) that AI software cannot substitute. AI is actually a tailwind: its AI data center revenue more than doubled YoY and grew over 30% sequentially in Q1 2026 (reported May 4, 2026).

Who is onsemi's biggest competitor?

Infineon Technologies is the closest rival and was named among NVIDIA's initial HVDC data-center power partners (alongside ST, ROHM, Navitas, TI) as of September 2025, a list onsemi was excluded from. Chinese SiC makers like BYD Semiconductor are also undercutting onsemi on automotive pricing.

Is onsemi laying off workers in 2026?

Yes. onsemi cut about 2,400 jobs (9% of workforce) in February 2025, and as of June 2026 reportedly planned up to 300 more cuts at its Rozhov pod Radhostem, Czech Republic plant amid low-cost Chinese SiC competition, plus a July 2026 plan to sell two fabs.

What is the Synaptics deal and why did onsemi stock fall?

On June 25, 2026, onsemi announced a definitive all-stock deal (~$7B enterprise value, 1.350 ON shares per Synaptics share) to acquire Synaptics for 'Physical AI', with Synaptics holders getting about 12% of the combined company. Onsemi's stock fell roughly 21% in the following days, its worst drop since 2020.

Who owns onsemi (ON Semiconductor)?

onsemi is publicly traded on Nasdaq under ticker ON, part of the S&P 500 and Nasdaq-100, with no parent company; insiders hold only about 0.35% of shares as of a June 26, 2026 filing, making it broadly held by institutional and public investors.

Semiconductor companies · United States

onsemi (ON Semiconductor)

onsemi.com ↗

Maker of power and sensing chips for cars, factories, and AI data centers.

Losing its protection

Assessed 24 July 2026 · Evidence as of 24 July 2026

The structural protection is eroding.

On the recordSince 24 July 2026 · Checkable from August 3, 2026 · Every call on the record Checkpoint: Q2 2026 earnings: gross margin trend and any hyperscaler HVDC design-win announcement

The call

onsemi's AI data center business is growing fast, but thin margins, a Chinese SiC price war in autos, and absence from NVIDIA's HVDC partner list leave the next year unsettled.

OnSemi makes semiconductor chips for cars and power systems. It is getting harder for them to compete because Chinese chip makers are selling similar products for less money, and bigger rivals like Infineon are winning the most important new customers (like Nvidia's power system partners). The company's profits are shrinking, they are laying off workers, and they just bought another company (Synaptics) for $7 billion in stock, which made investors nervous about whether the deal will work out. One thing that could turn this around: if OnSemi can land a major contract from a huge tech company for their newest power chips, or if their profits stop falling in the next earnings report, the stock might recover.

Why

AI pressure: NVIDIA HVDC partner ecosystem (Infineon, ST, ROHM, Navitas, TI). onsemi's AI data center revenue is doubling, but it was left off NVIDIA's first HVDC partner list, letting rivals claim the rack-power design wins. Could AI do the core job? Unlikely.

Bigger players: Infineon Technologies. Infineon holds the lead SiC position and got the NVIDIA nod onsemi didn't, pulling ahead in the fastest-growing power segment. Could a giant copy it? Probably.

What protects it. Owned fabs in seven countries and long automotive design-win lock-in that Chinese rivals and fabless competitors can't easily replicate.

What would change this call

onsemi's Q2 2026 earnings (Aug 3, 2026) gross margin stays below 38.5% again. would show margin erosion is structural, not a one-quarter dip.
onsemi names a hyperscaler HVDC/800V design win by end of 2026. would show it closed the gap after being left off NVIDIA's initial partner list.
Synaptics shareholder vote or regulatory review stalls or the deal is renegotiated before mid-2027. would confirm market skepticism about the $7B deal was warranted.

Key numbers

Q1 2026 gross margin 38.5%, down from 45-49% in 2022-23 (2026-03-31)
AI data center revenue doubled YoY, up 30%+ sequentially (2026-03-31)
Stock fell 21% on $7B Synaptics deal announcement (2026-06-01)

Named risks

Chinese SiC suppliers undercutting price in core automotive segment, forcing layoffs. Severity: high
Gross margin compression to 38.5% in Q1 2026 from 45-49% band in 2022-23. Severity: high
Synaptics deal dilutes shareholders ~12% amid integration risk through mid-2027 close. Severity: medium
Excluded from NVIDIA's initial HVDC data-center partner list, ceding AI power design wins to rivals. Severity: medium
Ongoing plant sales and Czech layoffs signal unresolved structural cost pressure. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Infineon Technologies	losing to	Named as NVIDIA's preferred HVDC data-center power partner, onsemi excluded from initial list (Sept 2025)
BYD Semiconductor, CRRC Times Electric, Tankeblue	losing to	Chinese SiC makers undercutting onsemi on price, driving Czech layoffs by June 2026
STMicroelectronics, ROHM, Navitas, Texas Instruments	contesting	All named among NVIDIA's HVDC partners ahead of onsemi as of Sept 2025
Allegro MicroSystems	contesting	onsemi's $6.9B takeover bid rejected and withdrawn April 2025

Questions people ask

Is onsemi profitable in 2026?: Barely. FY2025 net income was $123M on $5.995B revenue (about 2% net margin), and Q1 2026 posted a GAAP diluted loss of $(0.08) per share despite revenue rising 4.7% YoY to $1.513B, with gross margin at 38.5% versus 45-49% in 2022-23.
Could AI replace onsemi's business?: No. onsemi makes physical power and sensing semiconductors (SiC, GaN, image sensors) that AI software cannot substitute. AI is actually a tailwind: its AI data center revenue more than doubled YoY and grew over 30% sequentially in Q1 2026 (reported May 4, 2026).
Who is onsemi's biggest competitor?: Infineon Technologies is the closest rival and was named among NVIDIA's initial HVDC data-center power partners (alongside ST, ROHM, Navitas, TI) as of September 2025, a list onsemi was excluded from. Chinese SiC makers like BYD Semiconductor are also undercutting onsemi on automotive pricing.
Is onsemi laying off workers in 2026?: Yes. onsemi cut about 2,400 jobs (9% of workforce) in February 2025, and as of June 2026 reportedly planned up to 300 more cuts at its Rozhov pod Radhostem, Czech Republic plant amid low-cost Chinese SiC competition, plus a July 2026 plan to sell two fabs.
What is the Synaptics deal and why did onsemi stock fall?: On June 25, 2026, onsemi announced a definitive all-stock deal (~$7B enterprise value, 1.350 ON shares per Synaptics share) to acquire Synaptics for 'Physical AI', with Synaptics holders getting about 12% of the combined company. Onsemi's stock fell roughly 21% in the following days, its worst drop since 2020.
Who owns onsemi (ON Semiconductor)?: onsemi is publicly traded on Nasdaq under ticker ON, part of the S&P 500 and Nasdaq-100, with no parent company; insiders hold only about 0.35% of shares as of a June 26, 2026 filing, making it broadly held by institutional and public investors.

Timeline

2026-07-07onsemi reportedly plans to sell two chipmaking plants to cut costs
2026-06-30Stock fell ~21% on Synaptics news, worst drop since 2020
2026-06-26Q2 2026 guidance issued: revenue $1.5-1.6B, non-GAAP EPS $0.65-0.77
2026-06-25Announced $7B all-stock deal to acquire Synaptics for Physical AI push
2026-06-08Reports emerge of up to 300 more job cuts at Czech Roznov plant
2026-05-04Q1 2026 results: $1.513B revenue, 38.5% gross margin, GAAP loss per share
2025-04-14onsemi withdrew $6.9B unsolicited bid for Allegro MicroSystems
2025-03-01onsemi made unsolicited $6.9B all-cash bid for Allegro MicroSystems
2025-02-25Announced ~2,400 job cuts (9% of workforce) as restructuring
2023-03-01Headquarters moved from Phoenix to Scottsdale, Arizona

Revision history

24 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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