ON Semiconductor Corporation

Good day and thank you for standing by. Welcome to the OnSemi second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. And to ask a question at that time, you need to press star 1-1 on your telephone. If your question has been answered, you wish to move yourself from the queue, please press star 1-1 again. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Parag Agarwal. Please go ahead.

Thank you, Kevin. Good morning, and thank you for joining OnSummit's second quarter of 2025 Results Conference Call. I'm joined today by Hassan El-Khoury, our President and CEO, and Tad Tran, our CFO. This call is being webcast on the Investor Relations section of our website at www.onsummit.com. A replay of this webcast, along with our second quarter earnings release, will be available on our website approximately one hour following this conference call, and the recorded webcast will be available for approximately 30 days following this conference call. Additional information is posted on the investor relations section of our website. Our earning release and this presentation include certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures The most directly comparable gap financial measures and discussion of certain limitations when using non-gap financial measures are included in our earnings release, which is posted separately on our website in the Investor Relations section. During the course of this conference call, we will make projections or other forward-looking statements regarding the future events or future financial performance of the company. We wish to caution that such statements are subject to risk and uncertainties that could cause actual events or results to differ materially from projections. Important factors that can affect our business, including factors that could cause actual results to differ materially from our forward-looking statements, are described in the most recent Form 10-K, Form 10-Qs, and other filings with the Securities and Exchange Commission, and in our earnings list for the second quarter. Our estimates or other forward-looking statements might change, and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions, or other events that may occur, except as required by law. Now, let me hand it over to Hasan. Hasan?

Thank you, Parag. Good morning, and thank you all for joining us. In the second quarter, we made meaningful progress across our strategic priorities and advanced critical initiatives in automotive, industrial, and AI data center. In automotive, we're helping customers like Xiaomi improve range and enhance the driving experience, and we're expanding our engagement with more global OEMs and Tier 1s, including our collaboration with Scheffler. In AI data centers, We are enabling next-generation power architectures that drive efficiency and performance at scale through collaboration with market leaders like NVIDIA to accelerate the shift to 800 volt DC power architecture. We remain focused on making strategic investments to extend our competitive edge and deepen customer relationships to build long-term value. At the same time, we are making structural improvements across the business to enhance efficiency. This, combined with disciplined cost management, creates significant leverage in our model as we prepare to capitalize on a market recovery. On the financial side, we delivered Q2 revenue of $1.47 billion, exceeding the midpoint of our guidance, and non-GAAP gross margin and EPS of 37.6% and 53 cents, respectively. Turning to the demand environment, we are seeing signs of stabilization across our end markets. We have not seen any pull-ins to date due to tariffs, and our diversified manufacturing footprint remains a competitive advantage, providing sourcing options to our customers as they work on optimizing their supply chains. By market, automotive revenue in Q2 was down 4%, performing better than anticipated, and is expected to grow in the third quarter with continued EV ramps. In China, select Xiaomi YU7 electric SUV models integrate our 1,200-volt EliteSIC M3E, enabling better performance in the longest range in its class. China remains a growth driver for OnSemi with strong traction in both BEV and PHEV platforms. China revenue in Q2 grew 23% sequentially, driven by silicon carbide with the new EV ramps I mentioned last quarter. We also expanded our collaboration with Schaeffler to deliver our next generation traction inverter for a global OEMs PHEV platform using our latest EliteSig M4T trench technology to unlock higher energy efficiency and reliability. We expect adoption to continue to expand and our customer engagement to continue to diversify as OEMs redesign hybrid architectures to meet emissions target and extend range. Industrial revenue increased 2% quarter over quarter. Revenue for AI data center, which we report as part of our other bucket, nearly doubled again in Q2 over the same quarter last year. As outlined in the President's AI Action Plan, AI infrastructure has become a focus of national priority in the United States. AI growth will be limited by power delivery rather than compute alone, And OnSemi is the only broad-based U.S. power semiconductor supplier addressing this challenge with our intelligent power semiconductors dramatically increasing power density and reducing energy loss. We are actively working with leading XPU providers on smart power stages that address the power requirements of current and next-generation platforms. We are in production on single SPS products in an industry standard 5x5 package and began sampling a dual SPS in the same footprint. As part of our ongoing transformation, we will continue investing in next generation technologies where we have clear competitive advantages while reducing our exposure to areas with limited differentiation. This includes end of life of legacy products, exiting non-core businesses, and repositioning our image sensing portfolio toward higher value segments such as ADAS and machine vision. These actions are reshaping OnSemi into a company with a distinct value proposition powered by leadership and intelligent power, sensing, and analog mixed signal technologies. A strong example of this strategy in action is Treo. Momentum continues to build around our Treo platform with a design funnel that has more than doubled quarter over quarter as we progress towards our billion-dollar revenue target. We are on track to doubling the number of products sampling from last year. Trello's differentiated technology, modular SOC-like design, and ability to integrate high and low voltage domains are driving strong customer engagement across all our end markets. An example in automotive is 10BASE T1S, where we sampled over 10 customers as they work on their zonal architecture. After delivering our first Trello revenue in Q1, we've also reached an important milestone. We've now shipped over 5 million units from our East Fishkill facility this year. These milestones reflect the strength of our innovation engine and the strategic investments we've made to support long-term growth. By reducing complexity, sharpening our operational focus, and allocating capital more efficiently, we are building a more resilient and higher quality business for the long term. As the global economy accelerates to electrification, and intelligent automation, next generation vehicles, sustainable energy systems, and AI data centers are converging around the shared need for a new era of power solutions. Beyond silicon carbide, our strategic investments in next generation wide bandgap semiconductors have delivered transformative gains in power density, thermal performance, and energy efficiency. We started sampling customers on these new breakthrough technologies, and I will talk more about it soon. Let me now turn it over to Saad to give you more detail on our results and guidance for the third quarter. Thanks, Hassan.