ON Semiconductor sales rose 13% year-on-year, distribution channels will be an important direction

A few days ago, ON Semiconductor announced its business status. The total revenue for the fourth quarter of 2017 was US$1,377.5 million, which was an increase of approximately 9% over the same period last year. Revenue for the fourth quarter of 2017 decreased by approximately 1% compared to the third quarter of 2017. Total revenue in 2017 was US$5,543.1 million, and GAAP gross margin was 36.7%.

According to Keith Jackson, president and CEO of ON Semiconductor, ON Semiconductor has an extensive product portfolio in the industrial and automotive terminal markets that can well support the fastest growing end markets in the semiconductor industry. We believe we are also in the early stages of revenue in the automotive and industrial end markets. With the development of advanced driver assistance systems (ADAS), electric car, machine vision and robotics, we should further accelerate our revenue and gross profit margins in the near future.

ON Semiconductor completed the acquisition of Fairchild Semiconductor in 2016 and became the second largest supplier of power semiconductors in the world. Subsequently, a new organizational structure was announced, reflecting the evolution of ON Semiconductor's product lineup from standard products to highly differentiated power management, imaging, and simulation solutions. The new architecture has three product divisions including the Power Solutions Division, the Simulation Division, and the Image Sensors Division.

As of the third quarter of 2017, the revenue of ON Semiconductor's Power Solutions Division accounted for 50.9% of total revenue, 35.1% for Analog Solutions, and 13.9% for Image Sensors. Revenue from the power solution business increased by 73% over the same period of 2016. Simulation program business revenue increased by 35% year-on-year. This was mainly due to the acquisition of Fairchild's revenue. In addition, the image sensor business grew 7% year-on-year.

By region, in the third quarter of 2017, US business revenue accounted for 12.3%, Japan 7.9%, Hong Kong 34.3%, Singapore 25.9%, UK 11.1%, and other 8.4%. Compared with the same period in 2016, the percentage of Hong Kong's performance only increased from 27.2% to 34.2%. Other categories also increased from 5.5% to 8.4%. The proportion of revenue from the United States, Japan, Singapore, and the United Kingdom decreased slightly.

Recently, ON Semiconductor has announced its 2017 Best Distributor Awards list. The awards recognize outstanding distributors in each regional market, including their ability to lead overall channel sales, increase market share, increase sales of products purchased by ON Semiconductor, and their high scores in overall process management.

The 2017 Best Distributors are: