How GaN Power Push And Auto Deal Extension At ON Semiconductor (ON) Has Changed Its Investment Story

• In December 2025, GlobalFoundries announced a new collaboration with onsemi to co-develop and manufacture next-generation 650V gallium nitride power devices for high-demand applications such as AI data centers, electric vehicles, renewable energy, and industrial systems, with customer sampling targeted for the first half of 2026 and rapid scaling to volume production thereafter.
• A separate extension of onsemi’s long-running engagement with FORVIA HELLA, centered on PowerTrench T10 MOSFET technology produced in East Fishkill, further underscores the company’s push into more efficient, higher-value automotive power solutions.
• Next, we’ll examine how this GaN collaboration and expanded automotive power footprint could reshape onsemi’s investment narrative and long-term positioning.

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ON Semiconductor Investment Narrative Recap

To own onsemi, you have to believe its power and automotive franchises can offset recent margin pressure and modest top line momentum. The GaN partnership with GlobalFoundries and the extended FORVIA HELLA engagement support that thesis, but they do little to change the near term overhang from underutilized manufacturing capacity and the risk that portfolio exits weigh on revenue before higher value products meaningfully ramp.

The extended agreement with FORVIA HELLA around PowerTrench T10 MOSFETs is especially relevant here, because it reinforces onsemi’s position inside advanced automotive platforms at a time when its automotive segment remains both a key growth driver and a source of cyclical risk tied to regional demand and EV adoption trends.

Yet against these opportunities, investors should be aware of onsemi’s ongoing underutilized fab capacity and what that could mean for...

Read the full narrative on ON Semiconductor (it's free!)

ON Semiconductor's narrative projects $7.5 billion revenue and $1.9 billion earnings by 2028.

Uncover how ON Semiconductor's forecasts yield a $58.70 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members see onsemi’s fair value anywhere between US$49.59 and US$70.00 across 11 separate views, underscoring how far opinions can spread. You should weigh those against the risk that underused manufacturing capacity keeps pressure on margins and shapes how any future upside in higher value GaN and automotive power actually flows through to the bottom line.

Explore 11 other fair value estimates on ON Semiconductor - why the stock might be worth 9% less than the current price!

Build Your Own ON Semiconductor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ON Semiconductor research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free ON Semiconductor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ON Semiconductor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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