ON Semiconductor - Company of the Year
Company: ON Semiconductor, Phoenix, AZ
Company Description: ON Semiconductor is driving energy efficient innovations, empowering customers to reduce global energy use. The company is a leading supplier of semiconductor-based solutions, offering a comprehensive portfolio of energy efficient power management, analog, sensors, logic, timing, connectivity, discrete, SoC and custom devices.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Manufacturing - Large
Nomination Title: ON Semiconductor
Tell the story about what this nominated organization has achieved since January 1, 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
In Q4 2016, ON Semiconductor closed the Fairchild Semiconductor acquisition, which continues to further advance our global leadership in power technology with an expanded portfolio serving the automotive, industrial and communications markets. These three strategic-focus markets accounted for 75 percent of our 2016 revenue and are anticipated to grow faster than the semiconductor market in the next five years. With approximately $8 billion in combined annual revenue, this acquisition made ON Semiconductor a top 10 non-memory semiconductor device manufacturer—significantly increasing our presence in growing markets like automotive, industrial and smartphone power electronics. When you combine the market share rankings of ON Semiconductor (#10) and Fairchild (#3) we rose to the #2 discrete power semiconductor provider, and become a top 6 supplier with all major global distribution partners. In the industrial market, ON Semiconductor will become a top 10 motor control and power semiconductor supplier, and a top 5 motor control semiconductor supplier for all markets. Even before the Fairchild acquisition closes, ON Semiconductor already has the #1 market share positions for semiconductors in the following categories: Industrial ASICs, PC Core Power (DC/DC), Notebook Adapters (AC/DC), Automotive Adaptive Front Lighting, Automotive Image Sensors, Security Image Sensors, Audiology DSP Systems, Protection, and Linear Voltage Regulators. Additionally, we currently have the #2 market share positions for semiconductors in the following categories: White Good Appliance Intelligent Power Modules (IPMs), and General Purpose Operational Amplifiers (Op Amps).
2016 marked another year of strong performance for ON Semiconductor. Despite an unfavorable macroeconomic environment and challenging industry conditions, we delivered year over year revenue and earnings per share (EPS) growth in double digit percentage range. Through continued design win momentum in markets of strategic focus, strong execution and operational rigor, we continued share gain momentum in 2016. Given a challenging demand environment in 2016, we realigned our expenses and lowered our operating expenses as a percentage of revenue, as compared to the prior year. We also surpassed our annual commitment of capital return to shareholders, and we repurchased approximately $350 million of our common stock. ON Semiconductor demonstrates financial strength and efficiency through strong cash flow, a stable revenue stream and balanced geographic and end-market exposure. The company’s strong financial performance and effective use of resources should continue to provide opportunities for growth moving forward.
ON Semiconductor operates a flexible, reliable, responsive supply chain that supports complex manufacturing networks and dynamic global market conditions. This includes multiple manufacturing and logistics sites located near our customers to ensure supply continuity. During 2016, the company shipped more than 55 billion units through its global logistics network and delivered products with greater than 95 percent average on time delivery to requested dates for all key customers. ON Semiconductor sustains world-class quality performance, with average defect rates of less than 175 parts per billion (ppb).
As a result of our deep, long-term R&D investments, we are able to offer our customers advanced packaging and integration capabilities, ranging from wafers and bare die to chip scale packaging and multichip modules. We also provide an extensive process-technology portfolio for analog, mixed signal, digital and discrete devices that operate from ultra-low to very-high voltages, including CMOS and bipolar, Silicon, Silicon-Carbide, and Gallium-Nitride solutions.
With a broad ranging product portfolio composed of many product lines for key end-markets, a highly competitive global manufacturing footprint, and deep customer relationships, ON Semiconductor is well positioned in its key markets. Our investments over the past years in infrastructure, scale, technology and talent are yielding strong results as evidenced by our momentum and share gains in various end-markets. Our growth drivers remain intact, and we are well positioned to again outperform the industry in 2017.
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this organization since the beginning of 2016 (up to 150 words).
-2016 America’s Best Employers – Forbes
-2016 & 2017 World’s Most Ethical Companies – Ethisphere
-2016 Best Collaboration Partner – Huawei
-2016 Excellence Supply Partner Awards – Huawei
-Top 10 Power Product Award 2016 – Electronic Products China
-Total Cost of Ownership Supplier Award – Celestica
-#1 Social Media in Semiconductor Industry – Publitek
-Navigator Award – Midea
-Wolpertinger Marketing Award – EBV
-CES 2017 Innovation Awards Nominee – Consumer Technology Association
Of the following measures of success, which ONE do you want the judges to most appreciate about your organization's story of achievement since the beginning of 2016?