ON Semiconductor Corp. (NASDAQ: ON) announced a new design contract with Sineng Electric, a global leader in power electronics, to supply its latest‑generation hybrid power integrated modules (PIMs) for Sineng’s 430 kW liquid‑cooled energy‑storage systems and 320 kW utility‑scale solar string inverters.
The PIMs combine ON’s FS7 insulated‑gate bipolar transistor (IGBT) and EliteSiC silicon‑carbide technology, delivering higher power density, improved efficiency and lower switching losses. In benchmark tests, the FS7‑based hybrid module achieved a 0.07 % efficiency improvement and cut losses by 225 W in a 320 kW solar inverter configuration compared with competing power modules.
This win expands ON’s footprint in the renewable‑energy market and demonstrates the performance advantages of its wide‑bandgap portfolio. It also reinforces the company’s strategy to grow in AI data‑center and automotive electrification segments, where high‑efficiency power devices are critical for meeting tightening energy‑efficiency standards and accelerating electrification.
ON’s Q4 2025 earnings showed a 11 % year‑over‑year revenue decline to $1.53 billion, while non‑GAAP EPS of $0.64 beat estimates of $0.62. The decline was driven by weaker demand in legacy segments, but the company’s free cash flow of $1.4 billion and 24 % margin reflected strong cost control and a favorable mix shift toward higher‑margin power solutions. Management guided Q1 2026 revenue to $1.485 billion, slightly below consensus, signaling caution amid macro‑economic uncertainty while maintaining confidence in long‑term growth.
President and CEO Hassane El‑Khoury said, “We continue to invest in intelligent power and sensing technologies that position us to win in the most critical technology transitions shaping our industry. Our strategy is clear: lead in automotive, industrial, and AI data center power with innovation that delivers higher‑value solutions for our customers and long‑term returns for our shareholders.” CFO Thad Trent added, “In 2025, we generated $1.4 billion of free cash flow and returned 100 % of our annual free cash flow to shareholders through share repurchases. With our major investment cycle behind us and new technologies ramping, we continue to strengthen our financial foundation.”
The design win underscores ON’s ability to deliver solutions that meet the evolving needs of the clean‑energy sector, while its financial performance and management commentary highlight the company’s disciplined execution and strategic focus on high‑growth segments.
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