Onsemi is a buy, this analyst says - Cantech Letter

Cantech Letter's analysis report provides a positive investment recommendation for Onsemi, rating the company as a 'buy.' This analysis evaluates Onsemi's financial performance, market position, techn... Read original →

Onsemi’s 'buy' rating stems from its structural edge in automotive power semiconductors. Technologically, its SiC platform accelerates 800V architecture adoption, forcing upstream substrate suppliers to scale and downstream OBC/e-motor designs to evolve. Geopolitically, while the U.S. CHIPS Act favors domestic fabs, Onsemi’s packaging/test footprint in the Czech Republic and Hong Kong, China diversifies supply chain risk better than peers concentrated in single regions. Competitively, Infineon and STMicroelectronics will likely flood SiC capacity to curb Onsemi’s share—but deep co-design partnerships with Tesla and GM create high switching costs. Over the next 12–24 months, as global EV penetration crosses the 30% inflection point, automotive power ICs will shift from optional to standard, making Onsemi’s revenue visibility and margin resilience uniquely valuable in a cyclical downturn.