ON Semiconductor raises 2030 revenue growth target to 12%-14%

ON Semiconductor has raised its long-term revenue growth target to a compound annual growth rate (CAGR) of 12% to 14% through 2030, up from a previous target of 10% to 12%. The company announced these revised projections during an Investor Day on September 16, 2026.

A primary driver for this growth is the demand for power semiconductors in artificial intelligence (AI) data centers. The company expects revenue from the AI data-center segment to grow approximately 50% annually, exceeding $2.5 billion per year by 2030. This growth is supported by a projected increase in semiconductor content per AI data-center rack, which could rise from $15,000 to over $115,000 as architectures shift toward higher voltages.

Beyond AI, ON Semiconductor anticipates annual growth of approximately 9% in its automotive segment and 10% in its industrial segment. The company identifies a total addressable market of $213 billion by 2030 across automotive, industrial, and AI applications. Strategic focuses include silicon carbide, gallium nitride, and the ongoing acquisition of Synaptics.

Financial targets for 2030 include a 53% non-GAAP gross margin, a 38% operating margin, and a 30% to 35% free-cash-flow margin. The company also expects annual free cash flow to reach approximately $3.5 billion by 2030.