ON Semiconductor Corporation ON is strengthening its position in China’s fast-growing electric vehicle market, and that momentum could become a major growth driver for investors over the next few years. During its first-quarter 2026 earnings call, management highlighted that the company’s China automotive revenues increased year over year despite weakness in the broader passenger vehicle market. This signals that ON is gaining content share and benefiting from the rising adoption of advanced EV technologies.
A key reason behind this progress is the company’s growing leadership in silicon carbide (SiC) power solutions. ON revealed that its silicon carbide technology was present in nearly 55% of the new EV models showcased at the 2026 Beijing Auto Show. The company is also working closely with major Chinese automakers like Geely and NIO to support next-generation 900-volt EV platforms that enable faster charging and improved driving range.
The company’s traction in China matters because the region remains the world’s largest EV market and is increasingly influencing global EV technology standards. ON believes Chinese automakers are driving the shift toward higher-efficiency vehicle architectures, creating long-term demand for its power semiconductors. Management also noted that Chinese EV exports continue to rise, expanding the company’s opportunities beyond the domestic market.
ON’s growing exposure to premium EV power systems could support stronger revenue growth, margin expansion and market-share gains over time. Combined with improving AI data-center demand and a recovering semiconductor cycle, the company appears well-positioned for sustained long-term growth.
Key Competitors to Watch in the EV Semiconductor Race
Two major competitors of ON in the EV power semiconductor market are STMicroelectronics STM and Wolfspeed WOLF.
STMicroelectronics is one of the strongest rivals in automotive power chips, particularly in silicon carbide technology used in EV traction inverters and fast-charging systems. The company has built partnerships with several global automakers and continues expanding its SiC portfolio to support higher-voltage EV architectures. STMicroelectronics’ diversified automotive business and broad customer base make it a meaningful competitor as ON strengthens presence in China.
Wolfspeed, meanwhile, has focused heavily on silicon carbide materials and devices for electric vehicles and industrial applications. The company has invested aggressively in SiC wafer production to capitalize on rising EV demand. While Wolfspeed remains more concentrated in the SiC market, ON benefits from a broader portfolio that combines power management, sensing technologies and automotive networking solutions. Investors should monitor these peers because competition in high-efficiency EV semiconductors will likely shape market share trends and growth opportunities.
ON Price Performance, Valuation & Estimates
Shares of ON Semiconductor gained 127% over the past six months compared with the industry’s 83% rise.
ON’s One-Year Price Performance
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From a valuation standpoint, ON trades at a forward price-to-earnings (P/E) multiple of 29.66, down from the industry’s average of 34.8.
ON’s P/E Ratio (Forward 12-Month) vs. Industry
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The Zacks Consensus Estimate for ON’s fiscal 2026 earnings per share has increased in the past 30 days. The company is likely to report strong earnings, with projections indicating a 31.5% year-over-year rise in 2026.
Image Source: Zacks Investment Research
ON Semiconductor currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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STMicroelectronics N.V. (STM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).