onsemi (NASDAQ: ON) outlined a long-term growth strategy on Sept. 16, 2026, targeting a $213 billion total addressable market by 2030. The semiconductor firm aims to solve power density constraints limiting advancements in artificial intelligence, electrification, and automation.

CEO Hassane El-Khoury stated that power density has emerged as a defining engineering challenge of the decade. He noted that companies delivering more energy while consuming less space will lead the next era of innovation.

Market Convergence

The company identifies a convergence across automotive, industrial, AI data center, and emerging applications. These markets increasingly rely on common capabilities: efficient power conversion, physical perception, precision actuation, and connectivity.

This convergence allows onsemi to deploy common technology platforms across multiple end markets. High-voltage technology developed for automotive electrification can support industrial energy systems and AI data centers.

Technology Platforms

onsemi highlighted three technology platforms driving long-term growth:

• High-Voltage Technologies: Spans silicon, silicon carbide (SiC), and gallium nitride (GaN). Includes vertical gallium nitride (vGaN), exclusive to onsemi, for next-generation high-voltage applications.
• Treo: Provides high precision analog, high density digital, and high voltage capabilities for adaptive and autonomous systems.
• Embedded Power Platform (EPP): Uses the silicon wafer as the package to integrate silicon, SiC, and GaN technologies within a wafer-level architecture.

El-Khoury emphasized that power has become the common denominator across end markets. This creates opportunities to innovate beyond individual market trends.

Physical AI Focus

The company anticipates the next phase of AI growth will occur at the edge, where intelligence moves into machines interacting with the physical world. These systems require four capabilities: power, sense, control, and connected compute.

onsemi plans to apply technologies developed for automotive and industrial applications to this emerging market. The focus on system-level co-design aims to capture a larger share of value created by physical AI.

What the Numbers Show

The disclosed $213 billion addressable market represents a significant expansion from traditional component sales. By targeting system architectures rather than individual components, onsemi seeks to increase revenue potential per customer. This shift implies higher leverage from R&D investments and reduced dependence on single end markets.

onsemi (NASDAQ: ON) announced a strategic technology engagement with Subaru Corporation to evaluate its Embedded Power Platform (EPP) for future electrified vehicles. The collaboration aims to assess how advanced power integration can improve efficiency and simplify development.

Scottsdale-based onsemi unveiled the EPP architecture on Sept. 16, 2026. The platform uses the silicon wafer as the package foundation, integrating electrical, mechanical and thermal performance. This design increases power density by 3 – 5x compared with current solutions.

Architecture and Integration

EPP treats the silicon wafer as an active contributor to system performance rather than passive housing. It enables seamless integration of silicon, silicon carbide (SiC) and gallium nitride (GaN) technologies. Multiple devices, including FETs, drivers and controllers, are embedded in one package.

The platform leverages standard 12-inch silicon wafer manufacturing capabilities. Early sampling is expected in 2026 with strategic customers.

Application Benefits

The company highlights specific improvements for key sectors:

In AI racks, EPP reduces packaging overhead to support more compact power systems. For electric vehicles, it enables smaller traction inverters with improved efficiency.

Strategic Partnership

Subaru will evaluate the platform for future electrified vehicle architectures. The collaboration includes access to engineering samples and simulation models. Tamotsu Inui, Managing Executive Officer Chief General Manager of Engineering Div at Subaru, stated that the engagement allows evaluation of EPP’s integrated approach while drawing on onsemi’s modeling expertise.

Dinesh Ramanathan, Senior Vice President of Corporate Strategy at onsemi, noted that the transition to electrification is driving sophisticated vehicle architectures. He added that Subaru’s engagement brings valuable customer insight to EPP’s continued evolution.

What the Numbers Show

The source data reveals a significant divergence in performance metrics between AI and automotive applications. While AI infrastructure gains focus on physical footprint reduction (50% smaller) and thermal management (20% cooler), electric vehicle applications prioritize efficiency gains (15% lower losses) and density (4x higher). This suggests distinct optimization priorities for each end-market despite using the same underlying architecture.