ON Semiconductor announced a new extension of its long‑standing partnership with automotive supplier FORVIA HELLA that will see the company’s PowerTrench® T10 MOSFETs deployed across FORVIA HELLA’s advanced vehicle platforms. The T10 devices, manufactured at ON’s East Fishkill, New York facility, deliver ultra‑low conduction and switching losses, higher power density, and reduced output capacitance—features that enable tighter, more efficient power modules for electric and software‑defined cars.
The extension secures a long‑term supply agreement for ON’s next‑generation power devices, giving the company a steady revenue stream as automotive demand recovers. The deal is part of ON’s broader strategy to deepen relationships with key automotive customers and lock in high‑margin technology deployments. FORVIA HELLA’s CEO, Simon Keeton, noted that the T10 MOSFETs “are a key enabler for our advanced automotive platforms, allowing us to offer future‑proof solutions with greater efficiency and reliability.”
ON’s Q3 2025 earnings, released earlier this month, provide context for the partnership’s significance. The company reported revenue of $1,550.9 million, slightly below the $1.56 billion consensus, but posted a non‑GAAP diluted EPS of $0.63, beating the $0.59 estimate by $0.04. The EPS beat was driven by strong demand for AI‑related chips and disciplined cost management, offsetting a modest revenue miss that reflected a 1.9% decline in the Power Solutions Group and a 11% drop in the Advanced Mobility Group. The partnership extension is therefore a strategic win that aligns with ON’s focus on high‑margin automotive and industrial markets.
FORVIA HELLA’s own financials reinforce the partnership’s value. The supplier reported stable half‑year results for 2025, with sales of €4.0 billion and operating income of €237 million. The company’s nine‑month results for FY2025 showed sales of €5.9 billion and operating income of €338 million, indicating a solid financial footing that will support the long‑term supply agreement.
Management commentary from ON’s executive team highlights the importance of the deal. CEO Hassane El‑Khoury said the partnership “stabilizes core markets and underscores the positive impact of AI growth.” He also noted that the company is navigating market volatility through structural changes, suggesting confidence in maintaining profitability while investing in high‑return verticals.
The partnership’s timing is significant. With the automotive industry’s gradual recovery and the continued push toward electrification, securing a long‑term supply of high‑efficiency MOSFETs positions ON to capture a growing share of the EV power electronics market. The deal also reinforces ON’s manufacturing advantage, as the East Fishkill facility is the only 12‑inch power discrete and image sensor fab in the U.S., giving the company a unique production capability.
Overall, the extension strengthens ON’s competitive position, provides a predictable revenue stream, and aligns with the company’s strategic focus on automotive and industrial markets. The partnership is a material event that will likely influence long‑term investment models for stakeholders monitoring ON’s growth trajectory.
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