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Company outlines a $213 billion market opportunity as power becomes the foundational technology layer from infrastructure to physical applications
SCOTTSDALE, Ariz., Sept. 16, 2026 (GLOBE NEWSWIRE) -- onsemi (NASDAQ: ON) today outlined its long-term growth strategy to lead one of the largest and most consequential technology shifts of the next decade by solving the growing power constraints limiting the advancement of AI, electrification and automation. As these markets converge around common technology requirements, onsemi is leveraging its differentiated portfolio across power and sensing to address a $213 billion market opportunity and solve the needs of some of the most important technology trends shaping the global economy.
“Every transformational technology eventually encounters a physical constraint. As AI, electrification and automation continue to scale, power density is emerging as one of the defining engineering challenges of this decade,” said Hassane El-Khoury, President and CEO of onsemi. “The companies that lead in the next era of innovation will be those that can deliver more energy while consuming less space. As that challenge becomes more urgent, power has become a foundational technology layer that will help shape the pace of innovation, economic growth and global competitiveness. We have spent years building deep expertise and a broad portfolio across power and sensing to help customers solve this challenge and enable the next generation of intelligent machines.”
Unlocking a $213 Billion Opportunity
onsemi sees a $213 billion total addressable market by 2030 spanning automotive, industrial, AI data center and emerging applications. Although these markets are often viewed separately, they increasingly rely on the same underlying capabilities: efficient power conversion, perception of the physical world, precision actuation and control, and connectivity.
This convergence allows onsemi to deploy common technology platforms across multiple end markets. A high-voltage technology developed for automotive electrification, for example, can also support industrial energy systems and AI data centers. Advances in sensing and connectivity can extend across vehicles, factories, robotics, medical systems and other autonomous applications.
The company expects this platform-based model to increase the revenue potential of its core technologies by moving from individual components to higher-value solutions and system architectures that address a larger share of each customer's design requirements. Through this approach, onsemi can generate greater leverage from its R&D investments, reduce dependence on any single end market or technology cycle, and grow faster than the markets it serves.
“Throughout history, foundational technologies have created outsized value because they enable everything built above them,” El-Khoury said. “Power has become the common denominator across these end markets. For onsemi, that creates opportunities to innovate beyond any market trend, with multiple paths to expand content, gain share and capture more value.”
Solving the Next Challenge: Power Density
Capturing this opportunity requires addressing a growing constraint facing AI infrastructure and other intelligent systems – power density – or the ability to deliver greater performance and capability using less energy and less physical space.
Increasing power density requires electrical, thermal, mechanical and physical performance to be optimized simultaneously. Increasing power typically generates more heat, while reducing system size can make that heat more difficult to remove. Improving efficiency may require new materials, device architectures and integration methods. Historically, these trade-offs forced system designers to make compromises among power, size, cost and thermal performance.
As these challenges become more complex, value increasingly shifts to companies that can optimize across the entire system. onsemi has expanded beyond traditional power semiconductors to build capabilities spanning technologies, products, solutions and systems. onsemi highlighted three technology platforms that will shape the next generation of intelligent systems and drive long-term growth across its key end markets:
- High-Voltage Technologies: The Device Layer
onsemi's high-voltage portfolio spans silicon, silicon carbide (SiC) and gallium nitride (GaN), giving customers a range of options to optimize performance, efficiency, power density and cost. The portfolio includes vertical gallium nitride (vGaN), a differentiated technology, exclusive to onsemi, designed for next-generation high-voltage applications that can increase efficiency, improve switching performance and reduce system size where conventional power technologies are reaching their limits. - Treo: The Intelligence Layer
Modern systems must do more than convert power. They must monitor operating conditions, communicate across the system, respond to changing loads and protect critical functions in real-time. The Treo platform’s high precision analog, high density digital and high voltage capabilities, enable systems to become more precise, adaptive and autonomous. This allows onsemi to add these capabilities around the power device, increasing the functionality and value within a customer’s system. - Embedded Power Platform (EPP): The Integration Layer
EPP reimagines the package from passive housing into an active contributor to system performance. By using the silicon wafer itself as the package, EPP enables the seamless integration and interconnection of silicon, SiC and GaN technologies within a highly integrated wafer-level architecture. Multiple devices, including FETs, drivers and controllers, can be embedded together in a single package and co-optimized for electrical, thermal and mechanical performance. This enables complete power-system co-design, allowing electrical, thermal and mechanical characteristics to be evaluated and optimized together from day one. The result is higher power density, improved system performance, reduced development complexity and faster time-to-market.
As customers increasingly seek complete solutions rather than individual components, onsemi solves a larger portion of the customer’s challenge by reducing design complexity and accelerating development across automotive, industrial, AI data center and emerging applications. With this focus on the entire system-level solution, onsemi creates a competitive advantage that is difficult to replicate through individual components alone.
Beyond the Data Center: AI's Next Frontier is the Physical World
While today's AI investments are largely focused on building the infrastructure needed to train and run increasingly sophisticated models, the next phase of growth will occur at the edge, where intelligence moves beyond the data center into machines that interact directly with the physical world.
These physical AI systems must sense, decide, act and adapt safely in real-world environments, in real-time. Whether deployed in a robot, vehicle, factory, medical system or autonomous platform, each system requires four capabilities to operate together:
- Power to provide the energy foundation that enables intelligent systems to operate
- Sense to perceive and understand the physical environment
- Control to execute decisions through precise real-world actions
- Connected Compute to process, share and continuously adapt information at the edge
As this transition happens, many of these same technologies onsemi developed for automotive and industrial applications can be applied to this emerging market. onsemi's ability to combine these capabilities through system-level co-design and optimize performance across the full stack, positions it to deliver differentiated solutions and capture a larger share of the value created by physical AI.
“The most attractive opportunities of the next decade are emerging as markets converge around the same technologies,” El-Khoury said. “The ability to efficiently deliver power, sense the environment and enable intelligent decision-making will define the next generation of intelligent machines. Our differentiated technology platforms enable us to solve power density across the device, intelligence and integration layers in a way no other semiconductor company can, positioning us to expand our content and grow as AI moves from infrastructure into the physical world.”
