Accelerating the Journey
Towards a Sustainable Ecosystem
May 16, 2023

1

Public Information
Information
Public© onsemi
onsemi 2023
2023©

Safe Harbor

This presentation contains “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated
in this presentation could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi andforward-looking financial guidance. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,”“expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” or "Target" or by discussions of strategy, plans, or intentions. All forward-looking
statements in this presentation are made based on our current expectations, forecasts, estimates, and assumptions and involve risks,
uncertainties, and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements.
Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks, and uncertainties
described in this presentation, our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 6,
2023, our Quarterly Report on Form 10-Q for the first quarter of 2023 filed with the SEC on May 1, 2023 and other reports filed with or furnished to
the SEC, before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties actually occurs orcontinues, our business, financial condition, or operating results could be materially adversely affected, the trading prices of our securities could
decline, and you could lose all or part of your investment. We assume no obligation to update such information, which speaks only as of the datemade, except as may be required by law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified intheir entirety by this cautionary statement.
This presentation contains historical non-GAAP financial measures, including, among others, free cash flow (FCF) and FCF margin, non-GAAP
gross margin and non-GAAP operating margin. See the Appendix for a description of these financial measures and a reconciliation of all such nonGAAP financial measures to GAAP. This presentation also contains forward looking non-GAAP financial measures, some of which are adjusted forcertain special items. These special items are out of our control and could change significantly from period to period. As a result, we are not able toreasonably estimate and separately present the individual impact of these special items, and we are similarly unable to provide a reconciliation of
the non-GAAP measures. The reconciliation that is unavailable would include a forward looking income statement, balance sheet, and statement ofcash flows prepared in accordance with GAAP. We believe these non-GAAP measures provide important supplemental information to investors.
We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period
comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. In addition,
because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’
non-GAAP financial measures, even if they have similar names.
2

Public Information© onsemi 2023

Accelerating the Journey Towards a Sustainable Ecosystem
TOPIC

Welcome to the New World

Powder to Power

Accelerating the Flywheel

3

PRESENTER

Hassane El-Khoury
President & CEO​​

Simon Keeton​​

Executive Vice President & General Manager
Power Solutions Group

Sudhir Gopalswamy​​

Senior Vice President & General Manager
Advanced Solutions Group

Foundation Set:
Ready to Accelerate

Thad Trent​​

Q&A​​

All​​

Executive Vice President & CFO

Public Information© onsemi 2023

FROM ONSEMI ANALYST DAY 2021

Play to Win

 Focus on high-growth megatrends in Automotive and Industrial and win with onsemi intelligent power and sensing
 Double down and don’t dabble
 Invest in disruptive innovation to drive higher margin growth

Implement Structural Changes
 Optimize organizational structure to reduce complexities
 Streamline manufacturing to match the strategy and not the other way around Attract and retain the best, diverse talent across the board
 Engage and empower employees to make expeditious, data-driven decisions

Capture Value Focus on highly differentiated products that enable disruptive innovation
 Optimize manufacturing footprint and leverage expertise Eliminate price-to-value discrepancies

Execute Leverage new leadership team with history of strong execution
 Drive accountability throughout the organization
 Reward employees for delivering superior results
5

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Winning
Formula6

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What you are used to seeing…

…is a different cut of a market growing at 4%7

Source: Maximize Market Research PVT. LTD.;
Deloitte and Mordor Intelligence; KBV Research; Yole

Public Information© onsemi 2023

Welcome to the New World

EnergyInfrastructure

Electric
VehiclesSustainable
Ecosystem

Charging

Factory
Automation

8

5G CloudPower

Public Information

Advanced
Safety© onsemi 2023

Energy
Infrastructure$7.8B$15.5B

16% CAGR

25% CAGR
Electric
Vehicles$1.1B

26% CAGR

Sustainable
Ecosystem

Charging$5.6B

15% CAGR$9.1B

8% CAGR
Factory
Automation

5G CloudPower

Advanced
Safety$3.7B

8.8% CAGR

9

Based on current market projections, ’22 – ‘27

Public Information© onsemi 2023

Accelerating
onsemi Content
EnergyInfrastructure> $600 per inverter$350 - $1800
Electric
Vehicles$2,000-$4,000
per charger

Sustainable
Ecosystem

Charging$224 - $960

L2+

$5,000-$10,000
per factory
Factory
Automation

5G CloudPower

Advanced
Safety> $150 per server

10

Based on current market projections, ’22 – ‘27

Public Information© onsemi 2023

onsemi and VW Group Cement Strategic
Collaboration on Silicon Carbide
Technology for Next-Generation
Electric Vehicles with Strategic
Agreement / Jan 25, 2023
SensiML Teams withonsemi for Industrial Edge
AI Sensing Applications

onsemi Silicon Carbide Power Module forTraction Inverters Selected for Hyundai
Motor Group’s High-PerformanceElectric Vehicles / Jan 04, 2022
onsemi Imaging Technology
Enables Next Era of Digital
Cinematography

EnergyInfrastructure

Sep 14, 2022

Nov 4, 2021

onsemi and ZEEKR
Sign Long-Term
Supply Agreement for
Silicon Carbide Power
Devices / Apr 25, 2023
onsemi and Ampt
Collaboration Increases
Efficiency for Utility Solar
Providers / Jan 05, 2023

Electric
VehiclesSustainable
Ecosystem

Charging

Factory
Automation

5G CloudPower

Advanced
SafetyNIO Selects HighEfficiency Silicon Carbide
Traction Power Modules
from onsemi / May 11, 2022
onsemi Silicon Carbide
Technology Enables All-Electric
VISION EQXX to Go Further on aSingle Charge / Nov 14, 2022

onsemi to Integrate its Silicon
Carbide Technology in BMW
Group’s Next-Generation Electric
Vehicles / Mar 06, 2023
11

onsemi and Ride Vision
Collaborate on Advanced
Safety Solutions forMotorcyclists / Oct 25, 2022

Public Information© onsemi 2023

Markets that Matter
Semiconductor

Industry

TAM

$553B
4%
CAGR

Intelligent Power& SensingSustainable
Ecosystem

$91B
6%

$43B
16%

Revenue CAGR 2022 - 2027

10-12%

14%

21%

Electrification, creating a multi-decade opportunity for onsemi
SiC growth >2x market at ~70%*
Machine Vision for the future of automation
Power new generation of cloud and 5G
infrastructure with onsemi CAGR >20%
13

Public Information© onsemi 2023

Play to Win

Winning
Formula

…Implement Structural Change…
…Capture Value…
…and Execute…

14

Public Information©©onsemi
onsemi2022
2023

Winning Formula

Play to Win• Win the high-growth megatrends of Automotive andIndustrial with onsemi’s intelligent power and sensing• Invest in vertical integration and capabilities across all
power technologies• Deliver disruptive innovation across the BOM and drive
higher margin growth• Expand brownfield capacity in SiC and Image Sensors
to lead with best-in-class financials• Create the future with investments in university research
and workforce development

15

Public Information© onsemi 2023

Winning Formula…Implement Structural Change…
• Expand and scale Go-To-Market to widen reach andaccelerate segment penetration• Lead with Digital First to increase efficiency across all
corporate domains• Invest in new generation of Power ICs to deliver morevalue with a TAM expansion strategy• Optimize the manufacturing footprint to support growthand expand margins

16

Public Information© onsemi 2023

Winning Formula…Capture Value…
• Design in highly differentiated and optimized solutions
focused on customer needs• Go broad with technology and programs for high grossmargin market share gain: Elite Power Simulator,
DevWare SDK• Phase-in 200mm SiC substrates for the next wave of EV
ramps• Expand gross margin through efficiencies and new
product ramps to accelerate free cash flow
• Deliver best-in-class ROIC across all investment vectors
17

Public Information© onsemi 2023

Winning Formula…and Execute…
• Drive accountability throughout the organization withstrategic alignment but decision autonomy• And reward employees for delivering on our strategy
and commitments• Deliver on >$17B of customer LTSAs across all markets• Maintain stable and predictable financial performanceacross all market conditions

18

Public Information© onsemi 2023

Play to Win

Winning
Formula

…Implement Structural Change…
…Capture Value…
…and Execute…

= The Undisputed Leader of the New World
19

Public Information©©onsemi
onsemi2022
2023

EliteSiC Advantage
SUPPLYSCALE

 History of vertical integration Volume SiC boule growth, wafering,
substrate, epitaxy, device fabrication
 Best-in-class integrated modules,
discrete package solutions
and known good die

SUPERIORTECHNOLOGY Lead with die performance Differentiate with package
innovation

SupplyScale

Superior
Technology

Scope Die + Package = THE most
optimal solution on the planet

21

Public Information© onsemi 2023

 A multi-decade history in Auto andIndustrial markets
 High-quality high-volume
manufacturing
 Able to ramp inline with customer
expectations

SCOPE
 Suite of sustainable solutions
from energy generation toenergy consumption
 Depth and breadth of power
technologies
 Supporting portfolio for optimized
solutionsEliteSiC Advantage

SUPPLYSCALE
Superior Technology

 History of vertical integration Volume SiC boule growth, wafering,
substrate, epitaxy, device fabrication
 Best-in-class integrated modules,
discrete package solutions
and known good die

SUPERIORTECHNOLOGY Lead with die performance Differentiate with package
innovation

SupplyScale

Superior
Technology

Scope Die + Package = THE most
optimal solution on the planet

22

Public Information© onsemi 2023

 A multi-decade history in Auto andIndustrial markets
 High-quality high-volume
manufacturing
 Able to ramp inline with customer
expectations

SCOPE
 Suite of sustainable solutions
from energy generation toenergy consumption
 Depth and breadth of power
technologies
 Supporting portfolio for optimized
solutionsSuperior Technology

Substrate /onsemi Hudson

FabInternal
Package
CapacityNew
Product
Releases

The Path to the First $1B
High Yields 1.7x 

Substrate
Output10x 

23Since GTAT Acquisition

Die Output

12x 

Public Information

Package
Output4x © onsemi 2023

# New
Products

3x 

Lead with Die Performance…
Customer
Needs

onsemi Delivers

 Range – Efficiency
 Size – Fast Switching

M5

 Reliability – Ruggedness

 Channel engineering
M4

M1

 Innovative Cell
Structure

Traction System
Figure of Merit
30%

M3
M2

Comp
*1/𝑅𝑅𝑆𝑆𝑆𝑆 Chip @ 175°𝐶𝐶

24

Public Information© onsemi 2023

onsemiLead with Die Performance…
Differentiate with Package Innovation
 Range – Heat Extraction

CustomerNeeds

 Flexibility – Scalability
 Reliability – Ruggedness

Half Bridge
ModuleFull Bridgewith Cooling
ChannelEmbedded

Dual Side Cool

Transfer Molded

Single Switch

Next Gen Switch

 Advanced packaging materials
 World class thermal performance Simulations at Die, Package and System

Discrete

Case Module

Case Module+Gel-filled

Innovation25

onsemi Delivers

Public Information© onsemi 2023

Optimized Solutions are our DNA

Concurrent development of die and package leads to optimized solutions
1

Public Information© onsemi 2023

g

STORAGE

GENERATION

Solutionsfor Sustainable
Ecosystemsg
ELECTRIFICATIONCHARGING

g

STORAGE

GENERATION

Solutionsfor Sustainable
Ecosystemsg
ELECTRIFICATIONCHARGING

OEM Platforms –Optimized onsemi
Solutions that Scale

Ultra
High
PerformanceHigh Performance

Mid Range

Entry Level

29

Public Information© onsemi 2023

Powering Every Architecture30

Public Information©©onsemi
onsemi2022
2023

Powering Every Architecture
Customer
Needs

Ultra highperformance✔ Customer Wins
& LTSAs

onsemi Delivers
Quad SiC traction

31

SiC

Public Information© onsemi 2023

Powering Every Architecture
Customer
Needs

High performance withgood range & acceleration✔ Customer Wins
& LTSAs

onsemi Delivers
Dual SiC traction

32

SiC

Public Information© onsemi 2023

Powering Every Architecture
Customer
Needs

Good mid range
performance with on
demand acceleration✔ Customer Wins
& LTSAs

onsemi Delivers
SiC and IGBT solution, optimized
for system cost and performance
33

IGBT

Public Information

SiC© onsemi 2023

Powering Every Architecture
CustomerNeeds

EV entry level vehicle
with extended range✔ Customer Wins
& LTSAs

onsemi Delivers
Single SiC traction device

34

SiC

Public Information© onsemi 2023

Powering Every Architecture
CustomerNeeds

EV entry point vehicle✔ Customer Wins
& LTSAs

onsemi Delivers
Cost effective IGBT-based
system with upgrade path
35

IGBT

Public Information© onsemi 2023

Powering Every Architecture
Customer
Needs

Meet evolving market
demand for increased
performance at entry level✔ Customer Wins
& LTSAs

onsemi Delivers
Blended technology solution
combining best of IGBT and SiC

SiC & IGBT
36

Public Information© onsemi 2023

Enabling a Greener Choice
Exciter Module

onsemi delivers an exciter module

37

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice
Problem: Rare Earth Metals
 Regional dependency
 Industrial Waste (neodymium) Government mandate

38

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice
Problem: Rare Earth Metals
 Regional dependency
 Industrial Waste (neodymium) Government mandate

39

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice
Problem: Rare Earth Metals
 Regional dependency
 Industrial Waste (neodymium) Government mandate

40

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice
Problem: Rare Earth Metals
 Regional dependency
 Industrial Waste (neodymium) Government mandate

41

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice
Problem:
Solution Rare Earth Metals
 Regional
Enabling dependency
Separately Excited
Synchronous
Motor Industrial
Waste(neodymium)
Eliminates Magnets
 Government
mandate

42

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice43

Problem: Rare Earth Metals

Solution Regional dependency
 Industrial Waste (neodymium) Government mandate Enabling Separately Excited
Synchronous Motor Eliminates Magnets

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice44

Problem: Rare Earth Metals

Solution Regional dependency
 Industrial Waste (neodymium) Government mandate Enabling Separately Excited
Synchronous Motor Eliminates Magnets

SiC

Public Information© onsemi 2023

✔ Customer Wins
& LTSAsEnabling a Greener Choice45✔ Customer Wins
& LTSAs

Problem: Rare Earth Metals

Solution

onsemi delivers

 Regional dependency
 Industrial Waste (neodymium) Government mandate Enabling Separately Excited
Synchronous Motor Eliminates Magnets

 Exciter Module → completes theonsemi traction solution  Customer Win & LTSA

SiC

Public Information© onsemi 2023

Enabling a Greener Choice& LTSAs

Problem: Rare Earth Metals

Solution

onsemi delivers

 Regional dependency
 Industrial Waste (neodymium) Government mandate Enabling Separately Excited
Synchronous Motor Eliminates Magnets

 Exciter Module → completes theonsemi traction solution  Customer Wins & LTSAs

onsemi Solutions for a Sustainable Future46✔ Customer Wins

SiC

Public Information© onsemi 2023

Power of the Portfolio

Broadest Portfolio to Capture the EV Market
E-compressor

OBC✔ Customer Wins
& LTSAs

Exciter Module

Electronic
Power Steering
PTC Heater

Single Axle Traction
Inverter SiC/IGBT
48V LV DC-DC
Converter

DC-DC
Converter

160% annual growth in each of the last two years
472021 and 2022, expected 2023

Public Information© onsemi 2023

g

STORAGE

GENERATION

Solutionsfor Sustainable
Ecosystemsg
ELECTRIFICATIONCHARGING

49

Public Information©©onsemi
onsemi2023
2023

Lead with Scalability…
High Power PIM

Utility

PIM

Commercial

Discrete

Residential

50

Public Information©©onsemi
onsemi2023
2023

IGBT &
EliteSiC PIMs

HybridEliteSiC PIM

Discrete
IGBT & EliteSiC

320kW

150kW

6kW

Lead with Scalability…
Differentiate with Optimization
Case Study:
320kW, 1500V
Utility Scale
Solar Inverter

Customer Needs:
Performance ✔
Weight ✔
Size ✔

System Cost ✔
Go-to-Market speed ✔
Supply assurance ✔

✔ Customer Wins
& LTSAs

IGBT
SiC
Si Diodes

onsemi Delivers

51

Time to Market

Elite Power Simulator

Module Design

Optimized topology with a combination of best of Si and SiC devices

Technology

Optimized die process with leading performance

Packaging

Optimized for best thermals, 15% reduction in Rth with tailored package & layout
Public Information©©onsemi
onsemi2023
2023

Powering Every Architecture
EnergyStorage
Power
SystemSiC/
IGBT

EnergyGeneration
DC-AC
Inverter

DC-AC
Inverter

SiC

IGBT

Ultra Fast
EV Charger
AC-DC
inverter

LTSAs with 8 of top 10 Solar Inverter Customers
70% annual growth in each of the last 2 years
522021 and 2022, expected 2023

Public Information©©onsemi
onsemi2023
2023

DC-DC
converter

SiC

g

STORAGE

GENERATION

Solutions
Lifetime
for Sustainable
LTSA
Ecosystems$9Bg
ELECTRIFICATIONCHARGING

onsemi Flywheel

EnergyInfrastructure

Electric
VehiclesCharging

Sustainable
Ecosystem

Advanced
SafetyFactory
Automation
5G CloudPower

55

Public Information© onsemi 2023

Winning at the Core

EnergyInfrastructure

Electric
VehiclesSiC & SiPower

Charging

Image
SensorSustainable
Ecosystem

Advanced
SafetyFactory
Automation
5G CloudPower

56

Public Information© onsemi 2023

# 2 Global Position
9% Market Share (‘22)

SiC & SiPower

38% Rev Growth57

Based on current market projections and onsemi internal estimates

Public Information© onsemi 2023

CAGR(’22 - ’27)

The Profound Impact of 1%

Electric Vehicles

Data Centers

Industrial
Automation

EV Miles Driven

Power Consumption

Industrial Motor

205 TWh= ~19M homes

50% of theWorld’s
Electricity>3.2B/year>$390M/year>$25B/year

more EV miles driven WW

electricity cost savings WW

electricity cost savings WW

4.7x

2022

1% Efficiency
Improvement
58

2030

Public Information© onsemi 2023

Expanding from the CoreIntelligently
manage power
flow

Controller

Primarysourceof system
value

59

Feedback: Voltage,
Current, Temp

onsemi delivers

Gate
DriverSiC & SiPower

Maximize
performance
while
protecting
reliability

Public Information© onsemi 2023

 Efficiency (1-2%)
 Reliability
 Ease of Design
 System Cost

Expanding from the Core

Build from Leadership Position

Leader Analog Control

Extend to
Wide Bandgap
Extendto GaN

Market Leader
Si FET

60

IGBT

SiC

Public Information© onsemi 2023

Gate
DriverSiC & SiPower

Migrate to Digital Control

Market Leader

Controller

GaN

Expanding from the Core

Proliferate Power IC Portfolio
Auto

Lowest Cost
Highest Flexibility
Ease-of-Design

Ind

Cloud

Sustainable Ecosystem
TAM ($B)
Controller

AC-DC
Digital

SiC & SiPower

Gate Driver

70% GM

SiC & Si Power

PoL
Controller
Portfolio

Gate
DriverController

PMIC
Multi-Phase

AnalogHighestEfficiency

Switch/E-Fuse

2022

2027

Unlocks $14B of TAM Opportunity at up to 70% Gross Margin
61

Based on current market projections and onsemi estimates

Public Information© onsemi 2023

Expanding from The Core

Gate
DriverController

Delivers Complete Power Tree

SensorPMIC

12V/48V
Dig
PFC

Dig
LLC

HV IsoHV IsoIso
Driver DC/DC Driver

Sync
Rec

Pre Reg
PMIC

Battery
Protection

12V/24V/48VLLC

HV IsoDriver

Iso
DC/DC

M-ph
Controller

SPS

HV IsoDriver

Sync
Rec

SOC

MemoryPower
Switches

Low Power
Aux

NonPowerSensorPOL/
PMIC

Automotive Power Tree

PFC

SiC & Si
Power

IVN

48V
eFuse

POL/
PMIC

MCU

POL/
PMIC

Sensing
Hub

POL/
PMIC

FPGA

Industrial Power Tree
Low Power
Aux

Dig
PFC

48V
Dig
LLC

HV IsoDriverIso
DC/DC

HV IsoDriver

Sync
Rec

48V
eFuse

48V M-phController

Cloud Power Tree
62

Public Information

HC
POL

48V MCM© onsemi 2023

POL1

POL2

SPS

eFuse

12V M-phController

GPU
CPU
FPGA

SiC & Si
Power

63

Image
SensorPublic Information© onsemi 2023

# 1 Global Position
in auto & industrial

46%
68%

64

Auto Market
Share (‘22)

ImageSensorADAS Market
Share (’22)

Based on current market and onsemi estimates

Public Information© onsemi 2023

onsemi Advantage
 Global Shutter Rolling Shutter Image Signal
Processing

Auto & Industrial
Focus

Superior
Technology

 Installed base of>450M automotive
sensors

onsemi’s
Image
Sensor Devware Ref Designs
 Ecosystem

65

Solution
Enablement

Public Information

Decadesof Innovation© onsemi 2023

 45+ years ofsustained
innovation

onsemi Advantage
 Global Shutter Rolling Shutter Image Signal
Processing

Auto & Industrial
Focus

Superior
Technology

 Installed base of>450M automotive
sensors

onsemi’s
Image
Sensor Devware Ref Designs
 Ecosystem

66

Solution
Enablement

Public Information

Decadesof Innovation© onsemi 2023

 45+ years ofsustained
innovation

Superior Technology
High Dynamic Range

67

Public Information© onsemi 2023

Superior Technology
High Dynamic Range
Low Light Performance

68

Public Information© onsemi 2023

Superior Technology
High Dynamic Range
Low Light Performance
Low Power

Latest generation is30-70%

more power efficient

69

Public Information© onsemi 2023

Superior Technology
High Dynamic Range
Low Light Performance
Low Power
System Functions

70

Public Information© onsemi 2023

Cybersecurity
Functional Safetyonsemi Advantage
 Global Shutter Rolling Shutter Image Signal
Processing

Auto & Industrial
Focus

Superior
Technology

 Installed base of>450M automotive
sensors

onsemi’s
Image
Sensor Devware Ref Designs
 Ecosystem

71

Solution
Enablement

Public Information

Decadesof Innovation© onsemi 2023

 45+ years ofsustained
innovation

Image Sensor Leadership

Only Provider to Enable Complete Solutions
Partner Ecosystem
Automotive
Reference Design

Industrial
Module Design

DevWare SDK
Image Sensor

72

Public Information© onsemi 2023

DevWare SDK

Scale Business to 1000s of Customers

73

Public Information© onsemi 2023

Image Sensor Leadership

Only Provider to Enable Complete Solutions
Partner Ecosystem
Automotive
Reference Design

Industrial
Module Design

DevWare SDK
Image Sensor

74

Public Information© onsemi 2023

Automotive
Reference Design

2

Industrial
Module Design

PublicPublic Information
Information©
© onsemi
onsemi 2023
2023

Image Sensor Leadership

Only Provider to Enable Complete Solutions
Partner Ecosystem
Automotive
Reference Design

Industrial
Module Design

DevWare SDK
Image Sensor

76

Public Information© onsemi 2023

Partner Ecosystem

Partner Ecosystem

77

Public Information© onsemi 2023

Partner Ecosystem
OpticsDiscrete ISP

SerDes / IF

SoC/FPGA

onsemi Automotive Partner Ecosystem> 50 End-to-End Image Solution Partners

78

Public Information© onsemi 2023

ISVs

onsemi Advantage

 Global Shutter Rolling Shutter Image Signal
Processing

Auto & Industrial
Focus

Superior
Technology

 Installed base of>450M automotive
sensors

onsemi’s
Image
Sensor Devware Ref Designs
 Ecosystem

79

Solution
Enablement

Public Information

Decadesof Innovation© onsemi 2023

 45+ years ofsustained
innovation

Image Sensor Leadership
45+ Years of Sustained Innovation

1st 150 dB
HDR+LFM
Sensor2023

1st proto
digital camera
1975
Bayer
Pattern1975

1st Megapixel
CCD
1986
1st CMOS
APS
1993

80

1st Camera
on Chip
1995

1st Auto
CMOS Sensor
2005

1st Global Shutter
Pixel
1995

1st HDR+LFM
Auto Sensor
20171st >Film
Digital Sensor
2012

Public Information© onsemi 2023

SiPM for dToF
LiDAR
2018

Smart iToF
Depth Sensor
2022

Image Sensor Leadership

Only Provider to Enable Complete Solutions
Partner Ecosystem
Automotive
Reference Design

Industrial
Module Design

DevWare SDK
Image Sensor

81

Public Information© onsemi 2023

Expanding from the Core
Sustainable Ecosystem
TAM ($B)
Depth
SensorExtendLeadershipMarket Leader

Sensor Interfaces
Depth Sensor
Image Sensor

Image
SensorExtend Portfolio
SensorInterfaces

Market Leader

Automotive

ExtendIndustrial$5.3B TAM Opportunity by 2027
82

Based on current market projections

Public Information© onsemi 2023

2022

2027

eePROM
Comms
Interfaces

SensorInterfaces

SiC & Si
Power

Gate
Driver

Amplifier /Comparators

Logic

Image
Sensors
Depth
SensorController

Isolators

83

PublicPublic Information
Information

Signaling©
© onsemi
onsemi 2023
2023

Silicon
CarbideSensorInterfaces

SiliconPower
Image
Sensors
Power
ICs

3

PublicPublic Information
Information©
© onsemi
onsemi 2023
2023

$14

$60

$14

Artificial
Intelligence Accelerator

High Power AC/DC• AC/DC Totem PolePFC
• LLC Controller• HV Isolated Drivers• Isolated DC/DC
Converter• WBG FETs

• Multiphase Controllers• Smart Power Stages• 48V MCM
• POL Regulators• e-fuse Protection Devices

$2

$17

$7

Networking Unit

• Multiphase Controllers• Smart Power Stages• POL Regulators• e-fuse Protection Devices

Server Board• Multiphase Controllers• Smart Power Stages• 48V MCM
• POL Regulators• e-fuse Protection
Devices

Portfolio expansion increases our opportunity up to $5M per data center
85$25

Public Information© onsemi 2023

$50

Power of the Portfolio

EV Power
Applications

Broadest Portfolio to Capture the EV Market
E-compressor

OBC✔ Customer Wins
& LTSAs

Exciter Module

Electronic
Power Steering

PTC Heater

Single Axle Traction
Inverter SiC/IGBT
48V LV DC-DC
Converter

86

DC-DC
Converter

Public Information© onsemi 2023

onsemi. Everywhere. Today.
SiliconCarbideEV Power
Applications
SiliconPower

E-compressor

OBC

Exciter Module

Electronic
Power Steering

PTC Heater

Single Axle Traction
Inverter SiC/IGBT
48V LV DC-DC
Converter

87

Dots represent onsemi devices designed in BMW’s electric i7 Series vehicles

DC-DC
Converter

Public Information© onsemi 2023

onsemi. Everywhere. Today.
Silicon Carbide
Silicon PowerPower ICs
Sensor Interfaces
Image Sensors
Other

88

Dots represent onsemi devices designed in BMW’s electric i7 vehicles

Public Information© onsemi 2023

Energy
Infrastructure

Comms
Interfaces

SiliconCharging
Power

SiC/Si Power leadership enables us
to win complete power trees,
unlocking $14B TAM @ up to 70% GM

eePROM

SiliconCarbideSensorInterfaces
Electric
VehiclesWe are expanding intelligent sensing
leadership though focused
innovation in Auto & Industrial

Logic

Amplifier /Sustainable
Comparators
Ecosystem

Image
Sensors
Isolators
Factory

Automation

Power
ICs

Advanced
SafetyWe accessorize these solutions witha broad array of products that makeus indispensable to customers

Signaling

5G CloudPower

89

PublicPublic Information
Information©
© onsemi
onsemi 2023
2023

onsemi’s Transformation has Driven Outperformance

Outperforms
SOX by147%

December 2020

May 2023
ON

91

Public Information

SOX© onsemi 2023

Structural Changes Set the Foundation for Growth
Revenue

Gross Margin &Operating Margin

$8.3B

$5.5B

49%

36%

$6.7B

Free Cash Flow
$1.6B
$1.3B

35%

$5.2B
14%
Gross Margin
Operating Margin

2019

2020

2021

2022

2019

2020

2021

2022

$0.16B
2019

2020

2021

2022

 Revenue at 26% CAGR 2020-2022

 Gross Margin improved by 1,310 bps

 Free Cash flow increased by 10x

 Focused on high-growth
megatrends in Auto and Industrial

 Exited non-core low margin businesses Executed Fab Liter Strategy

 Invested in Silicon Carbide and
300mm fab

 Doubled down on
Silicon Carbide Eliminated Price to Value Discrepancies
 Operating Income increased 5.3x
faster than revenue
 Reduced OpEx to <15% of revenue

92

$0.5B

Public Information© onsemi 2023

 Initiated share repurchases;$3B repurchase authorization

Structural Changes Set the Foundation for Growth
Revenue

Gross Margin &Operating Margin

$8.3B
36%

$6.7B
$5.5B

Free Cash Flow

49%

$1.6B
$1.3B

35%

$5.2B
14%
Gross Margin
Operating Margin

2019

2020

2021

2022

2019

2020

2021

2022

$0.5B
$0.16B2019

Industry-Leading Results Accelerating Shareholder Value Free Cash Flow growth of 10x: #1 among global semis
 ROIC of 38.6%: Top 4 in global semis Operating Income growth of 3.7x: Top 3 in global semis
93

Public Information© onsemi 2023

2020

2021

2022

Premium Businesses

EnergyInfrastructure

Electric
VehiclesSustainable
Ecosystem

Charging

Factory
Automation

4

5G CloudPower

Public Information

Advanced
Safety© onsemi 2023

Premium Businesses
Intelligent SensingIntelligent Power #1 position in Auto and Industrial

Silicon Carbide
 Revenue growing >2x market at 70%

 Growing in machine vision

 Vertically integrated manufacturing at scale 68% market share in ADAS, 27% market sharein industrial

 Industry-leading efficiency through innovative device
and packaging technologies

 8MP ramping with ~2.5x ASP uplift #1 in Ultrasonic and Inductive Sensing for
Automotive and Industrial

Silicon Power – IGBT, FET#2 position with growing market shareExpanding BOM coverage with new products

Exited price sensitive markets

 Delivering high margin and the most profitablesensor business in the industry

Power ICs Double down on $14B TAM with >70% gross margin Optimize system cost with gate drivers andcontrollers
5 Expand leadership to full Power Tree solutions

Public Information© onsemi 2023

Premium Businesses Driving Premium Results

Revenue
Growth~3x Market

Shareholder
Value

Silicon Carbide
Sustainable
SiliconPower
Ecosystem
Power ICs
Image Sensors

Shareholder
Capital Return96

ExpandingGross Margin

Public Information© onsemi 2023

Accelerating
Free Cash Flow

Revenue
Growth~3x Market

ExpandingGross Margin

Shareholder
Value

Shareholder
Capital Return98

Public Information

Accelerating
Free Cash Flow

© onsemi 2023

Markets that Matter
Semiconductor

Industry

TAM

$553B
4%
CAGR

Intelligent Power& SensingSustainable
Ecosystem

$91B
6%

$43B
16%

Revenue CAGR 2022 - 2027

10-12%

14%

21%

Electrification, creating a multi-decade opportunity for onsemi
SiC growth >2x market at ~70%
Machine Vision for the future of automation
Power new generation of cloud and 5G
infrastructure with onsemi CAGR >20%
99

Public Information© onsemi 2023

Sustainable Ecosystem to Drive ~3x the Market Growth
Automotive

CAGR

 Electrification – SiC & IGBT Increasing ADAS Adoption Power Management for LED andAdvanced Safety2022 – 2027

Industrial
Auto

100

19%

Industrial

10%

Other

-4%

2022

 Energy Infrastructure Factory Automation
 EV Charging

Other2027 Target
Public Information© onsemi 2023

 5G & Cloud Power growing at 22%
 Engage with Strategic market leadersopportunisticallywith value driven solutions
 No investment in broad markets

Sustainable Ecosystem to Drive ~3x the Market GrowthIntelligent Power

CAGR

2022 – 2027

Intelligent
PowerIntelligent
Sensing
Other
2022
101

 SiC growth 2x the industry at 70%; 35-40%
market share Si Power – IGBT, FET share gain in Auto
& Industrial
 Accelerate Power IC growth with controllers
and gate drivers

Intelligent Sensing

16% Grow in machine vision for auto and industrial
 Advanced safety for ADAS and in-cabin vision Factory Automation
 Opportunistic in human vision applications

8%

Other

1%

 Attractive cash flow businesses
 BOM indispensability and complementarity

2027 Target
Public Information© onsemi 2023

Highly Diversified Customer Base

102

Customer Needs:

onsemi Delivers:

 Best-in-Class Performance

 Industry-leading products

 Reliable suppliers at scale Vertically integrated supply chain

 Tighter supplier base Broad portfolio of products

 Competitive system cost Solution optimization across BOM
Public Information© onsemi 2023

Top 20 customers
represent ~35% of revenue
Top 20 customers each buy~800 products on average

Revenue
Growth~3x Market

ExpandingGross Margin

Shareholder
Value

Shareholder
Capital Return103

Public Information

Accelerating
Free Cash Flow

© onsemi 2023

Executed Fab Liter Manufacturing Strategy

Fab Liter
Capacity

Flexible, Low Fixed-Cost Footprint

2020

2021
Strategic GrowthBase
Revenue1042022

 Reduced legacy capacity to minimize fab footprint –Fab Filler strategy is dead
 Captive capacity for differentiated technologies.
Leverage external manufacturing for non-proprietary
technologies
 Invested in brownfield expansion for capital efficiency
and industry-leading ROIC Divested four subscale fabs – recognize $160M in
annualized savings through 2025
 Reduces gross margin volatility

Public Information© onsemi 2023

200000

The Next Strategy: Fab Right

200000180000180000Fab Right

160000160000Optimize asset footprint for
efficiencies and best-in-class ROIC

140000140000 Optimize mix across the network for best cost
structure Ramping 300mm Fab for scale and capacity
 Leverage Base footprint and brownfield
investments for Strategic Growth Multi-year LTSAs provide visibility for expansion
 Extract savings of $160M from divestiture of fourFabs
 Geographically diverse footprint for supply chain
assurance

Capacity

120000120000100000100000

80000
80000

60000
60000

40000
40000

− EFK is the only US-based 300mm power
semiconductor Fab

20000
20000

00

2020

105

2021
Strategic GrowthBase
Revenue
External / Flex

2022

2023

2025

Public Information2027© onsemi 2023

External / Flex capacity
 Utilize internal capacity for differentiatedproducts with external partners for flex capacity
 Maximize internal utilization to reduce volatility
in margins

Fab Right: onsemi’s Path to Net Zero by 2040
Greenhouse
Gas Emissions

Water
42% water
recycled in 2022

Near-term targets
to be published in 2024

21% YoY Scope 2 emissions
reduction in 2022

Waste

SBTi
Letter signed
December
2022

70% waste diverted
from landfill in 2022

EnergySavingFab Right Energy Savingsof 18% in kWh/Wafer by 2027

23% YoY waste
Reduction in 2022

106

19% YoY water withdrawal
reduction in 2022

18% savings by 2027

Public Information© onsemi 2023

The Next Milestone: Expand Gross Margin to 53%
53%

Mix / New Products
 Continued mix shift to Auto &Industrial
 Ramp new and differentiatedproducts at margins above target

Silicon Carbide (SiC)

49.2%

 Accretive margins at scale Absorption of startup costs
 SiC growing 2x market1

Fab Right

2022
GM

107

Mix / New
Products

1. Yole SiC market forecast: 2022-27 CAGR of 33%

SiC

Fab Right

Public Information

2027
Target GM© onsemi 2023

 Optimize manufacturing network forcost efficiency
 $160M in fixed-cost savings fromfour Fab divestitures in 2022
 Maximize utilization across networkwith flex to external capacity

Revenue
Growth~3x Market

ExpandingGross Margin

Shareholder
Value

Shareholder
Capital Return108

Public Information

Accelerating
Free Cash Flow

© onsemi 2023

Accelerating Free Cash Flow
Expanding Free Cash Flow
Margin to 25-30%
 Grow revenue ~3x
semiconductor industry
 Expand Gross Margin
 Targeted Operating Expense
deployment$1.6B

 High ROIC investments
 Working Capital & Inventory
management
2019

2020

2021

2022

2027
Target$3.5 - 4.0 billion in Free Cash Flow in 2027
109

Public Information© onsemi 2023

Market Success Driving Investments
Fab Right:
Expanding Capacity

Silicon Carbide
Expansion Expand capacity forstrategic growth tocapture market
opportunity

 Invest $2B in next
phase of end-to-end
SiC capacity

 Ramp 300mm andcapacity expansion
 Augment competitive
advantage inpackaging Evaluate brownfield
opportunities in
Europe, USA andKorea

Capital Efficiency
 Capital Intensity to be
15-20% through 2024 anddecline to 11% by 2027
 Minimize risk throughcustomer co-investments
and LTSA visibility
 Government subsidies tooffset CapEx investments
and enhance ROIC

Investing for growth while maintaining best-in-class ROIC

110

Public Information© onsemi 2023

Delivering Best-in-Class ROIC
onsemi ROIC
38.6%

 40% less CapEx compared toGreenfield investment

24.6%
12.8%

2019

8.5%

2020

Brownfield Efficiency

2021

2022

 Accelerates time to market by
2 years2022 Capital Intensity
onsemi

12%Peer Low

14%

Peer MedianPeer Average
Peer High111

CapEx savingsof ~40%onsemi capital intensity
is nearly half the peergroup median

22%
26%
55%

Public Information

Greenfield© onsemi 2023

BrownfieldRevenue
Growth~3x Market

ExpandingGross Margin

Shareholder
Value

Shareholder
Capital Return112

Public Information

Accelerating
Free Cash Flow

© onsemi 2023

Investments and Capital Allocation

R&D
and CapEx
 Invest in organic
initiatives toextend competitive
advantage
 Maintain best-inclass ROIC

Balance
Sheet

M&A Strategic M&A
adjacent andcomplimentary Technology tuckins
 Accretive tofinancial model Maintain flexibility
to pursue organicand inorganic
growth Return 50% ofFree Cash Flowthrough share
repurchases

 Maintain existing
credit rating of
BB+/Ba1

 $3B repurchaseauthorization inplace Low leverage
provides firepower

113

Public Information

Shareholder
Returns© onsemi 2023

Accelerating the Financial Model
2022

114

2027

ActualTargetRevenue$8.3B

10-12% CAGR•

Grow at ~3x the semiconductor industry

Gross Margin

49.2%

53%

•
•

Mix shift, new products & SiC ramp at accretive margins
Optimize cost through Fab Right
Invest in R&D for long-term growth
Digital First - embrace new technologies & data
analytics

OperatingExpenses

14.6%

13%

•
•

Operating Margin

34.7%

40%

•

Grow Operating Income faster than revenue

CapEx

12%

11%

•
•

Market success drives investments
High ROIC brownfield investments

Free Cash Flow

20%

25-30%••$3.5-$4.0B of Free Cash Flow in 2027
Return 50% to shareholders

Public Information© onsemi 2023

Premium Businesses Driving Premium Results

Revenue
Growth~3x Market

Sustainable
Ecosystem

Premium
Markets
Silicon Carbide
Premium
SiliconBusinesses
Power
Premium
PowerProducts
ICs
Premium
Results
Image Sensors

Shareholder
Value

Shareholder
Capital Return115

Public Information© onsemi 2023

Accelerating
Free Cash Flow

ExpandingGross Margin

Appendix

119

PublicPublic Information
Information©
© onsemi
onsemi 2023
2023

Appendix – GAAP to Non GAAP Reconciliation$ in Millions

FY 2019

FY 2020

FY 2021

FY 2022

35.8%
0.0%
0.0%
0.0%
0.4%
36.1%

32.7%
0.0%
0.0%
0.0%
0.0%
32.7%

40.3%
0.0%
0.0%
0.1%
0.0%
40.4%

49.0%
0.2%
0.1%
0.0%
0.0%
49.2%

Reconciliation of GAAP to Non-GAAP Operating Margin
GAAP Operating Margina) Amortization of acquisition-related intangible assetsb) Restructuring, asset impairments and other, netc) Goodwill and intangible asset impairmentd) Third party acquisition and divestiture-related costse) Non-recurring facility costsf) Impact of business wind downg) Amortization of fair market value step-up of inventoryh) Litigation settlement
Non-GAAP Operating Margin

FY 2019
7.8%
2.1%
0.5%
0.0%
0.2%
0.0%
0.0%
0.4%
3.1%
14.1%

FY 2020
6.6%
2.3%
1.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
10.2%

FY 2021
19.1%
1.5%
1.1%
0.0%
0.2%
0.1%
0.0%
0.0%
0.0%
21.9%

FY 2022
28.3%
1.0%
0.2%
4.6%
0.2%
0.0%
0.2%
0.0%
0.0%
34.5%

Reconciliation of net cash provided by operating activities to free cash flow:
Net cash provided by operating activities
Purchase of property, plant and equipment
Free Cash Flow
Free Cash Flow Margin

FY 2019$ 694.7(534.6)$ 160.1
2.9%

FY 2020$ 884.3(383.6)$ 500.7
9.5%

FY 2021$ 1,782.0(444.6)$ 1,337.4
19.8%

FY 2022$ 2,633.1(1,005.0)$ 1,628.1
19.6%

Reconciliation of GAAP to Non-GAAP Gross Margin:
GAAP Gross Margina) Impact of business wind downb) Amortization of acquisition-related intangible assetsc) Non-recurring facility costsd) Amortization of fair market value step-up of inventory
Non-GAAP Gross Margin

120

Public Information© onsemi 2023

Notes and Sources – Welcome to the New World
What you are used to seeing (images)•
Maximize Market Research Pvt. Ltd•
Deloitte and Mordor Intelligence•
KBV Research•
Yole
Sustainable Ecosystem ‘22-’27 TAM CAGRs•
onsemi estimates•
LMC Automotive: Global Hybrid & Electric Vehicle Forecast - Quarter 4, 2022•
Omdia: Power IC Market Tracker, Sep’22
Sustainable Ecosystem Accelerating onsemi Content• Based on total onsemi BOM opportunity
Markets that Matter• onsemi estimates based on current market projections• Semiconductor TAM excludes Memory
Winning Formula…and Execute• >$17B: onsemi Form 10-Q filing for period ended March 31 2023

121

Public Information© onsemi 2023

Notes and Sources – Powder to PowerDie Performance• Internal benchmarking
Optimized Package Thermals 15% reduction in Rth• Based on internal estimates
Lifetime LTSA Value• Based on signed customer agreements

122

Public Information© onsemi 2023

Notes and Sources - Accelerating The Flywheel
Winning at the Core – SiC and Si Power• ‘22 – ’27 CAGR, Global position and market share based on onsemi estimates

The Profound Impact of 1%• https://www.iea.org/data-and-statistics/charts/global-ev-sales-by-scenario-2020-2030• 2022 Global Electricity Cost: https://www.globalpetrolprices.com/electricity_prices/• 2022 Global Electricity Production: https://ourworldindata.org/electricity-mix• Industrial motor consumption: https://www.globalefficiencyintel.com/newblog/2017/infographic-energy-industrial-motor-systems• 2022 WW data center power consumption: cc-techgroup.com• 2022 US Household Total Power Usage: enerdata.net
Expanding from the Core - Power• onsemi estimates• Omdia: 1Q23 - Semiconductor Device Data By Application Markets• Omdia: Industrial Semiconductor Market Tracker – 3Q22 Database, Jan'23• Omdia: Power Semiconductors in Automotive Report – 2022 Database, 5/26/22• LMC Automotive: Global Hybrid & Electric Vehicle Forecast - Quarter 4, 2022
• Omdia: Power IC Market Tracker, Sep'22• Yole: Silicon Carbide Forecast 2023
• Yole: 2022-27 SiC market forecast of 33% CAGR

Expanding from the Core - Sensing• onsemi estimates• Sensor Interfaces Source: Research & Markets 2020 report• Omdia: 2021 Industrial Market Tracker• Omdia: Industrial Semiconductor Market Tracker – 3Q22 Database Jan’23• Omdia: AMFT 1Q23
• Yole: Imaging for Automotive 2022
Data Center Opportunity• onsemi estimates based on total BOM opportunity
Electric Vehicle Opportunity• onsemi estimates based on onsemi devices designed in BMW’s electric 7
Series vehicles

Winning at the Core - Image Sensor• onsemi estimates• TSR: Automotive Camera Market Analysis 2021-2022• Yole: Status of CMOS Image Sensor Industry 2021 Report
Image Sensor – onsemi Advantage• onsemi image sensor shipments
Image Sensor – Superior Technology• onsemi estimates
123

Public Information© onsemi 2023

Notes and Sources – Foundation Set: Ready to Accelerate
Stock Chart• Stock Chart represents period from: December 7, 2020 to May 5, 2023; Source: FactSet

The Next Milestone: Expand Gross Margin to 53%• 2027 Target based on onsemi internal estimates

Structural Changes Set the Foundation for Growth• Non-memory semiconductor device companies with market cap. of more than $5B & 100% revenue fromsemiconductor devices, adjusted for acquisitions; Source: FactSet• 2019-2022 for Free Cash Flow & Operating Income growth; 2022 for ROIC ; Source: FactSet

Market Success Driving Investments• Capital Efficiency projections based on internal onsemi estimates

Premium Businesses• onsemi estimates• Omdia: 1Q23 - Semiconductor Device Data By Application Markets• Omdia: Industrial Semiconductor Market Tracker – 3Q22 Database, Jan'23• Yole: Imaging for Automotive 2022
• Omdia: Power Semiconductors in Automotive Report – 2022 Database, 5/26/22• LMC Automotive: Global Hybrid & Electric Vehicle Forecast - Quarter 4, 2022
• Omdia: Power IC Market Tracker, Sep'22• Yole: Silicon Carbide Forecast 2023
• Bank of America Research• Yole: 2022-27 SiC market forecast of 33% CAGR
• TSR: Automotive Camera Market Analysis 2021-2022• Yole: Status of CMOS Image Sensor Industry 2021 Report

Driving Best in Class ROIC
• Factset• Company reports, onsemi estimates• Capital Intensity peer group includes TXN, IFX, Rohm, STM & WOLF
• ROIC = (Operating income – Tax)/(Shareholder equity + net debt)
Accelerating the Financial Model• 2027 Target based on internal onsemi estimates

Markets that matter• onsemi estimates based on current market projections, excludes Memory
Sustainable Ecosystem to Drive ~3x the Market Growth• onsemi estimates based on current market projections
Fab Right, Revenue by End markets and technology• onsemi estimates based on current market projections
Onsemi’s Path to net Zero
• Scope 2 Emissions normalized by annual revenue (Metric Tons CO2e per $ Million Revenue); 2022 GHG data isin progress for limited assurance• Total Water Withdrawal normalized by annual revenue (Megaliters per $ Million Revenue)• Total Waste Generation normalized by annual revenue (Metric Ton Waste per $ Million Revenue)• Projected. Energy Savings based on internal estimates
124

Public Information© onsemi 2023

Follow Us @onsemi

www.onsemi.com