ON Semiconductor Corporation (NASDAQ:ON) Q4 2023 Earnings Call Transcript

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Harsh Kumar: Understood, guys. Very helpful. And then as my follow-up, Hassane, should I think of your silicon carbide business as having a starting point of about $1 billion in 2024 because that capacity, I believe, that came on, the $200 million was, from my understanding, reallocated to other customers. And then part two of the question is you made a very subtle, but I think important comment that something to the tune of you’re already running 200 millimeter silicon carbide in the Fabs or maybe on [indiscernible]. Could you just expand on that?

Hassane El-Khoury: Yeah. So look, I’m not going to give an absolute guide on silicon carbide. What I would say is 2x the market. We feel comfortable with 2x the market, given all of the platforms and given the customers and the ramps that we’ve seen. The question now is on end demand, but end demand is better, we’re going to grow better. And demand is where we believe it is, we’re going to grow at that, but it will be 2x the market, and that’s showing both an aggressive ramp and share gains. So that’s on the outlook for 2024. As far as the 200-millimeter, this 1 – it was more, I would say, I thought it was more a direct comment because what we’ve always said is we’re going to qualify 200-millimeter in 2024 and ramp in 2025.

So my prepared remarks is purely highlighting the fact we are on track to achieve that goal that we set out, which is qualifying in ‘24, revenue ramp in ‘25. It’s already running in the Fab, which is a pretty good leading indicator of where our [indiscernible] and our confidence in the [indiscernible] is going to be in ‘24.

Harsh Kumar: Very helpful, guys. Thank you.

Operator: That concludes today’s question-and-answer session. I’d like to turn the call back to Hassane El-Khoury for closing remarks.

Hassane El-Khoury: Through the structural changes we’ve made over the last three years, we built the resilience required in our business to navigate a dynamic macro environment. We remain close to our customers. We are committed to our financial target model with our strategy of enabling the sustainable ecosystem. Again, we’d like to thank our worldwide teams for their continued tenacity and ongoing contributions to the company’s success, and thank you for joining our call today.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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