ON Semiconductor targets $213B AI power market amid strategic shift

Everyone’s been talking about compute and memory as the chokepoints holding back AI. Onsemi thinks they’re looking at the wrong bottleneck. At its Investor Day on September 16, the chipmaker laid out a thesis that power density, not processing speed or storage, will be the constraint that defines the next era of AI infrastructure. And the company is positioning itself to be the one solving it, targeting a total addressable market of $213 billion by 2030 for its core power semiconductor business. The numbers behind the bet Onsemi’s AI data center revenue sits at roughly $500 million in 2026. By 2030, the company expects that figure to exceed $2.5 billion, representing a compound annual growth rate north of 50%. The broader revenue picture is equally ambitious. Onsemi is aiming for approximately $11 billion in total revenue by 2030, implying a 12-14% CAGR across the business. That growth spans automotive electrification, industrial automation, AI data centers, and what the company calls “physical AI” applications. The Synaptics acquisition, which onsemi announced as forthcoming, would push the total addressable market even higher, from $213 billion to over $243 billion. Power density...