# ON Semiconductor lifts AI data center sales goal to $3.0 billion *The chipmaker designated its Bucheon silicon carbide fab in South Korea as its primary production hub following a $600 million acquisition of Ferric.* **Published:** November 7, 2026 **By:** Ji-woo Han **Section:** Semiconductors & AI Hardware — South Korea **Format:** Company Watch **Confidence:** high **Source:** https://eastasiabrief.com/semiconductors/on-semiconductor-lifts-ai-data-center-sales-goal-3-1204 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Onsemi lifted its 2030 AI data center revenue goal to over $3.0 billion Nov. 2 - Bucheon fab produces over one million 200 mm silicon carbide wafers annually - Ferric acquisition for $600 million closes in fourth quarter of 2026 ![Technicians wearing protective cleanroom gear monitor automated processing equipment at a semiconductor wafer fabrication facility. (AI-generated image)](https://eastasiabrief.com/media/2026-11-07-84cca81abd34.webp) *Technicians wearing protective cleanroom gear monitor automated processing equipment at a semiconductor wafer fabrication facility. (AI-generated image)* ON Semiconductor reiterated Nov. 6, 2026 that its Bucheon wafer fab serves as its primary silicon carbide manufacturing anchor as electricity bottlenecks reshape global artificial intelligence data center architecture. Chief Executive Officer Hassane El-Khoury emphasized the facility's strategic role during an executive address, identifying electrical power availability as the single largest constraint facing artificial intelligence expansion. The Scottsdale, Arizona-based chipmaker raised its 2030 AI data center revenue target Nov. 2 by $500 million to over $3.0 billion. AI data center revenue climbed 175% year-over-year in the third quarter. The Bucheon facility completed a 1.4 trillion won ($1.05 billion) expansion in October 2023. At full operation, the site can produce more than one million 200 mm silicon carbide wafers annually. The company agreed Nov. 6 with Czech authorities to conclude a planned silicon carbide expansion in Roznov. That decision consolidates high-volume wide-bandgap wafer fabrication at the South Korean site. Silicon carbide chips handle higher voltages and operating temperatures than conventional silicon while losing less energy as heat. Data center designers use the material in power supply units to raise rack energy density. Electricity delivery has emerged as the main operational constraint for hyperscale clusters. Leading accelerator racks require upward of 100 kilowatts each, forcing server operators to convert higher voltages with fewer transformation steps. Power supplies convert incoming grid feeds of 415 volts alternating current into direct current before stepping the voltage down to 48 volts. Silicon carbide metal-oxide-semiconductor field-effect transistors manage that high-voltage transition with minimal thermal loss. To bridge the gap between high-voltage power entry and low-voltage processors, ON Semiconductor agreed Nov. 2 to buy Ferric for $600 million in cash. Ferric develops integrated voltage regulators that sit beside compute silicon. Integrated voltage regulators convert 48-volt current down to processor voltages below one volt directly on the compute package. Eliminating external converter components cuts board-level electrical transmission loss by up to 15%. The Ferric transaction includes up to $175 million in additional cash milestones tied to revenue targets through 2029. The acquisition is scheduled to close in the fourth quarter of 2026, subject to US antitrust review. Bucheon supplies the raw high-voltage discrete components that step grid power down to server-rack distribution levels. Ferric's regulators step power down to core processor circuits, creating a unified power conversion delivery route. STMicroelectronics and Wolfspeed also supply power devices for industrial server infrastructure. ON Semiconductor is pairing its Korean fab output directly with on-package voltage conversion to defend against margin erosion in electric vehicles. Automotive power component procurement slowed across Western markets during 2025 and 2026. Server power demand filled the fab capacity gap, lifting third-quarter AI server revenue 39% from the second quarter, the company said. The Bucheon S5 line converted processing lines from 150 mm to 200 mm wafers during 2025. Larger wafer diameters reduce edge die loss and lower the manufacturing cost per chip by roughly 30%. The Korean plant finished qualification of its eighth-generation 1,200-volt silicon carbide planar platform during the second quarter. The platform lowers conduction losses by 20% compared to previous generations, the company said. The company added technical manufacturing staff in Bucheon to manage automated chemical-mechanical polishing tools. The site operates as a dedicated high-volume line for power discretes and intelligent power modules. The Bucheon site also houses packaging lines for specialized power modules. Packaging bare dies into multi-chip modules protects wide-bandgap materials from mechanical strain while accelerating heat removal through copper baseplates. Cloud operators are redesigning power distribution shelves to replace silicon-based insulated gate bipolar transistors. Switching to silicon carbide reduces power supply unit volume by half while increasing total energy conversion efficiency above 97%. Hyperscale operators including Microsoft and Alphabet plan to double power consumption across their data center footprints by 2028. The resulting equipment procurement creates immediate volume demand for Bucheon's 200 mm fabrication lines. ON Semiconductor is allocating fab capacity to meet multi-year server component contracts. The company relies on its Korean wafer inventory to satisfy accelerated delivery schedules requested by server original equipment manufacturers. The company and South Korea's Ministry of Trade, Industry and Energy have not published any filings indicating new capital expenditure or physical line additions at Bucheon beyond the completed 2023 expansion. The merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expires in December 2026 unless regulators request additional information. ON Semiconductor plans to present integrated power roadmaps to cloud customers in January 2027. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | SiC fab consolidation and IVR acquisition | Bucheon fab anchors 1M 200 mm SiC wafer capacity for AI data centers | Domestic SiC fabs lack volume 200 mm yields for 48V power supply units | Power toolmakers face higher delivery demand for Korean wafer processing | Server operators gain integrated 48V-to-1V power stage, trimming losses by 15% | ## In this story - **Companies:** ON Semiconductor - **Tickers:** ON - **Exposed:** Ferric - **Impact:** Supply Chain, Capex, Pricing ## Primary sources 1. onsemi.com 2. motie.go.kr 3. m-i.kr 4. ebn.co.kr 5. mk.co.kr --- Cite as: East Asia Brief, "ON Semiconductor lifts AI data center sales goal to $3.0 billion," November 7, 2026. https://eastasiabrief.com/semiconductors/on-semiconductor-lifts-ai-data-center-sales-goal-3-1204