# ON Semiconductor Raises 2030 Revenue Growth Target to 12%-14%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/29788
Published: 2026-10-11T11:25:59.000Z
Updated: 2026-10-11T11:25:59.000Z
Section: Business

> The company expects AI data-center revenue to grow about 50% annually through 2030, with annual free cash flow reaching approximately $3.5 billion by then.

ON Semiconductor raised its long-term revenue growth range for 2026 through 2030 as it targets expanding demand for power semiconductors in artificial-intelligence data centers, electric vehicles and industrial systems.

The company presented a 12%-14% compound annual growth target at its Investor Day on Sept. 16, 2026, compared with its earlier 10%-12% target for 2022 through 2027. Because the periods differ, the ranges are not a direct like-for-like comparison.

The presentation listed 2025 revenue of $6.0 billion and estimated 2026 revenue of $6.5 billion. ON Semiconductor expects revenue from AI data-center semiconductors to grow approximately 50% annually through 2030 and exceed $2.5 billion a year by then.

Semiconductor content per AI data-center rack could rise from approximately $15,000 today to more than $115,000 in future architectures as power systems move to higher voltages. The company identified a $213 billion total addressable market by 2030 across automotive, industrial, AI data centers and emerging applications.

ON Semiconductor is focusing its strategy on silicon carbide, gallium nitride, the Treo platform and its Embedded Power Platform. The company expects the same power technologies to serve applications spanning AI infrastructure, electric vehicles, factories and physical-AI systems.

Its 2030 targets include a 53% non-GAAP gross margin, a 38% operating margin and a 30%-35% free-cash-flow margin. Annual free cash flow is projected to reach approximately $3.5 billion by 2030, while gross profit dollars are expected to grow about 22% annually and operating income dollars about 30% annually through the period.

“Every transformational technology eventually encounters a physical constraint,” Hassane El-Khoury, president and CEO of ON Semiconductor, said Sept. 16.

The company said it invested approximately $8.7 billion over the five years through 2026, expanding its estimated addressable market by $81 billion. It agreed in June to acquire Synaptics in an initially valued transaction of approximately $7 billion. On Oct. 1, 2026, the companies revised the agreement to an all-cash transaction valued at approximately $5.7 billion.

“Our objective over the past five years was not simply to grow, but to build a higher-quality business with stronger earnings power,” Thad Trent, executive vice president and chief financial officer of ON Semiconductor, said Sept. 16.