On Semiconductor ON is benefiting from strategic acquisitions and rising AI data center demand. In the second quarter of 2025, AI data center revenues more than doubled year over year, as it uses silicon carbide and silicon-powered devices to gain traction.
Building on this momentum, the company recently announced an agreement with Aura Semiconductor to acquire rights to its Vcore power technologies, including related IP licenses.
This move strengthens ON’s power management portfolio and supports its mission to provide comprehensive power solutions for AI data centers, from the grid to the core. With decades of experience in silicon and SiC, ON offers improved solutions for solid-state transformers, power supply units, 800 VDC distribution and power delivery.
Aura’s technology positions ON among the few companies capable of meeting the demanding power requirements of AI infrastructure with scalable and efficient designs.
ON Benefits From Qorvo Acquisition in SiC Market
ON Semiconductor’s focus on SiC technology is paying off. The acquisition of Qorvo’s QRVO Silicon Carbide Junction Field Effect Transistor business strengthened ON Semiconductor’s position in the SiC market.
In 2025, ON completed its $115 million acquisition of the Silicon Carbide Junction Field-Effect Transistor business, including United Silicon Carbide from Qorvo, strengthening its EliteSiC power portfolio to enhance energy efficiency in AI data centers, improve EV battery safety and support industrial energy storage and circuit breakers. This move from Qorvo enables ON to leverage Qorvo’s advanced SiC technology, capturing growth in electric vehicles and industrial applications.
Expanding Clientele Aids ON’s Prospects
ON’s dominant position in silicon carbide has been a major factor in its strong partner base, which includes NVIDIA NVDA, Schaeffler and BorgWarner BWA, thereby driving growth.
In July 2025, ON announced its collaboration with NVIDIA to advance 800 VDC power architectures, delivering high-efficiency, high-density power solutions for next-generation AI data centers. This partnership positions NVIDIA and ON at the forefront of high-performance AI infrastructure power delivery.
ON Semiconductor also announced an expanded collaboration with Schaeffler through a new design win featuring its next-generation EliteSiC silicon carbide MOSFETs. The ON solution will power Schaeffler’s traction inverter for a major global automaker’s advanced plug-in hybrid electric vehicle platform.
ON’s partnership with BorgWarner has been noteworthy. The partnership with BorgWarner expands their collaboration on silicon carbide (SiC) technology, with a $1 billion lifetime value, by integrating ON’s EliteSiC power devices into BorgWarner’s VIPER power modules to enhance EV efficiency and performance.
ON Offers Q3 Guidance
ON’s expanding portfolio, acquisitions and strong partner base are expected to benefit the company’s top-line growth.
For the third quarter of 2025, onsemi expects revenues between $1.465 billion and $1.565 billion.
Non-GAAP earnings are expected to be between 54 cents per share and 64 cents per share.
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BorgWarner Inc. (BWA): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report ON Semiconductor Corporation (ON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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