Onsemi Has Targeted Growth in AI Data Centers
The company unveiled new power semiconductor technology and an acquisition plan to expand its market share.
Updated on Sept. 23, 2026 in Semiconductors
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Onsemi announced a strategic pivot toward power semiconductors for AI data centers during its September 16, 2026, Investor Day. The company revealed it has reached $500 million in annual AI-related revenue and projected that figure will exceed $2.5 billion by 2030.
Why it matters
As AI infrastructure demands shift from current levels of 60 kW toward potential 1 MW power limits, Onsemi is positioning its technology to address the primary bottleneck of power density. The company aims to scale its total addressable market significantly through new product portfolios and a planned acquisition.
Onsemi introduced the GaNEXUS portfolio for power conversion and the Embedded Power Platform, which utilizes wafer-level integration to boost power density. These innovations support systems currently drawing 60 kW, with designs aimed at future requirements reaching 200 kW to 1 MW.
The players
Onsemi
This semiconductor manufacturer provides power management and sensor solutions and is listed on the NASDAQ under the ticker ON.
Synaptics
This company is a developer of human interface hardware and software that Onsemi has announced plans to acquire.
The details
Onsemi is expanding its reach by acquiring Synaptics, a move intended to raise its total addressable market from $213 billion to over $243 billion. This strategy relies on integrating high-performance power technologies to manage the intensive energy needs of next-generation artificial intelligence infrastructure.
Timeline
Onsemi held its Investor Day on September 16, 2026.
The company reported $500 million in AI data center revenue for 2026.
AI data center revenue is projected to exceed $2.5 billion by 2030.
The Tech Race
The introduction of the GaNEXUS portfolio marks a transition toward gallium nitride as a critical component for AI hardware power management. This shift positions Onsemi to compete directly in the race to solve thermal and density constraints as AI compute demands scale toward 1 MW per system.
As companies like Onsemi refine power efficiency, the move could lead to more scalable AI services and improved data center sustainability. For investors, the company's progress toward its $11 billion total annual revenue target by 2030 remains a key performance indicator for the stock.
The takeaway
Onsemi is betting that solving the power density crisis is the key to scaling artificial intelligence systems. Industry participants should monitor how the integration of new power platforms impacts the efficiency and reliability of large-scale AI compute environments.
Further reading
For more on industry hardware developments, see the latest updates in Semiconductors.
Source note: This article includes information reported by Crypto Briefing.
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