ON Semiconductor (ON) Launches GaNEXUS For AI Data Centers And Robotics - Yahoo Finance

ON Semiconductor (ON) launched its GaNEXUS gallium nitride power portfolio targeting high-demand applications such as AI data centers, robotics, industrial automation, and energy infrastructure. The n... Read original →

ON Semiconductor’s GaNEXUS launch is a strategic strike at the power architecture inflection point driven by AI compute density. Gallium nitride adoption will accelerate the obsolescence of silicon MOSFETs upstream and force server motherboard redesigns downstream—especially as 48V direct power delivery displaces legacy 12V rails. While U.S. CHIPS Act incentives temporarily lower GaN manufacturing costs, supply chain exposure remains in epitaxial wafers if U.S.-China tech restrictions tighten. Competitors like Infineon and STMicroelectronics will likely counter with integrated GaN modules paired with digital control firmware to defend robotics and edge-AI sockets. Within 18 months, volume deployment in hyperscale data centers could pivot ON from a discrete component vendor to a system-level power solutions provider, materially lifting gross margins—but current stock valuation already prices in aggressive adoption, making design-win conversion rates the critical execution metric.