ON Semiconductor Corporation (NASDAQ:ON) Nasdaq Investor Conference December 10, 2024 11:00 AM ET
Company Participants
Hassane El-Khoury – CEO
Thad Trent – CFO
Conference Call Participants
Joe Moore – Morgan Stanley
Joe Moore
Great. Thank you, everybody. I’m Joe Moore back again. Very happy to have with us the management team of ON Semi, Hassane El-Khoury, CEO; and Thad Trent, CFO.
Question-and-Answer Session
Q – Joe Moore
So maybe if go off-script breaking news today that you’ve acquired the Universal Silicon Carbide business from Qorvo. Can you talk a little bit about that? What benefits do you guys see from that?
Hassane El-Khoury
Sure. So if you think about the strategic rationale, of course, we’re a power semiconductor provider, including silicon carbide and wide bandgap, and we’ve always said that the competitive advantage that we have is the ability to give customers a solution to stay look for their specific needs and or optimized. So how does that — the acquisition of the silicon carbide JFET business fit into this overall strategy and more appropriately, how does it fit the customer need. With the emergence of AI, the AI trajectory from a power perspective is increasing every generation. And now the AI server going from 40-kilowatt to, call it, hundreds of kilowatts, as that transition happens, you start to need more of wide bandgap technology devices rather than just a silicon from an efficiency perspective, but also from a cost and area. Because a rack doesn’t get any different. The size of a rack, the XY and height are almost spec-ed. So therefore, real estate is important. So you need a more compact power solution that is able to provide the efficiency when you deploy at scale. That’s what the silicon carbide JFET does for us. It’s a smaller die. It’s a higher efficiency, higher frequency product than this regular — even silicon carbide. And with our ability to, over time, bring that in, it gives us that also a competitive advantage from
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