ON Semiconductor is drawing investor interest as the Trump administration expands CHIPS Act equity funding. The program now includes up to $874 million in commitments across 30 semiconductor firms.
The company provides critical power systems for electric vehicles and energy efficiency solutions for AI data centers. Under its "Fab Right" plan, the firm is divesting from lower-margin legacy products.
Management is shifting focus toward higher-value silicon carbide and advanced power solutions to bolster margins. Despite this strategic shift, the company recently reported a significant one-time loss of $769.8 million.
Analysts expect earnings growth to outpace revenue as the company increases its exposure to the AI and automotive sectors. Markets are monitoring how this transition to high-value chips will impact long-term performance within the U.S. semiconductor industry.