This Executive Overview presents summary information regarding the industry, markets, business and operating trends of ON Semiconductor
Corporation, which was incorporated under the laws of the State of Delaware in 1999, and its subsidiaries (we, us, our, ON Semiconductor or the Company).
participate in unit and revenue surveys and use data summarized by WSTS (an industry research firm) to evaluate overall semiconductor market trends and to track our progress against the market in the areas we provide semiconductor components. The
most recently published estimates from WSTS project a compound annual growth rate in our serviceable addressable market of approximately 5.0% through 2020. These are not our projections and may not be indicative of actual results. We, like many of
our competitors, view this information as helpful third party projections and estimates.
ON Semiconductor Overview
ON Semiconductor is driving innovation in energy efficient electronics. Our extensive portfolio of sensors, power management, connectivity,
custom and SoC, analog, logic, timing and discrete devices helps customers efficiently solve their design challenges in advanced electronic systems and products. Our power management and motor driver semiconductor components control, convert,
protect and monitor the supply of power to the different elements within a wide variety of electronic devices. Our custom ASICs and SoC devices use analog, MCU, DSP, mixed-signal and advanced logic capabilities to enable the application and uses of
many of our automotive, medical, aerospace/defense, consumer and industrial customers products. Our signal management semiconductor components provide high-performance clock management and data flow management for precision computing,
communications and industrial systems. Our growing portfolio of sensors, including image sensors, optical image stabilization and auto focus devices, provide advanced solutions for automotive, wireless, industrial and consumer applications. Our
standard semiconductor components serve as building blocks within virtually all types of electronic devices. These various products fall into the logic, analog, discrete, image sensors, IoT and memory categories used by the WSTS group.
We serve a broad base of end-user markets, including automotive, communications, computing,
consumer, medical, industrial, networking, telecom and aerospace/defense. Our devices are found in a wide variety of end products including automobiles, smartphones, media tablets, wearable electronics, personal computers, servers, industrial
building and home automation systems, factory automation, consumer white goods, security and surveillance systems, machine vision, LED lighting, power supplies, networking and telecom equipment, medical diagnostics, imaging and hearing health,
sensor networks and robotics.
Our portfolio of devices enables us to offer advanced ICs and the building block components
that deliver system level functionality and design solutions. We shipped approximately 36.7 billion units during the six months ended June 29, 2018, as compared to 36.0 billion units during the six months ended June 30, 2017. We
offer micro packages, which provide increased performance characteristics while reducing the critical board space inside todays ever shrinking electronic devices and power modules, delivering improved energy efficiency and reliability for a
wide variety of medium and high power applications. We believe that our ability to offer a broad range of products, combined with our applications and global manufacturing and logistics network, provides our customers with single source purchasing
on a cost-effective and timely basis.
Operating and Reporting Segments
As many products are sold into different end-markets, the total revenues reported for a segment is not
indicative of actual sales in the end-market associated with that segment, but rather is the sum of the revenues from the product lines assigned to that segment. From time to time, we reassess the alignment of
our product families and devices to our operating segments and may move product families or individual devices from one operating segment to another. As of June 29, 2018, the Company was organized into the following three operating and
reporting segments: the Power Solutions Group, the Analog Solutions Group and the Intelligent Sensing Group.