ON Semiconductor Partners with NIO on 900V EV Platforms, BoA Upgrades Stock
ON Semiconductor expanded its partnership with NIO to develop 900V EV platforms using EliteSiC technology, aiming to improve switching efficiency and drivetrain performance. Bank of America Securities upgraded the stock, highlighting strong free cash flow yield, a $6 billion buyback plan, and potential for 30% EBIT margin by 2028.
1. Expanded NIO Collaboration
ON Semiconductor broadened its strategic partnership with NIO to support transition from 400V to next-generation 900V electric vehicle platforms, covering integration of EliteSiC enhanced M3e devices across models slated for the 2026 Beijing Auto Show, including the flagship ES9 SUV.
2. EliteSiC Technology Benefits
The EliteSiC enhanced M3e silicon carbide MOSFETs deliver higher switching efficiency, improved body diode performance, better thermal management, and increased power density, targeting reduced energy losses and stronger durability under short-circuit conditions.
3. Bank of America Upgrade
Bank of America Securities upgraded ON Semiconductor shares, citing an improving product pipeline, strong free cash flow yield and the launch of a $6 billion share buyback program while noting ongoing EV market headwinds.
4. Financial Outlook and Margin Expansion
The upgrade highlighted potential EBIT margin expansion to 30% by 2028 driven by cost optimization and growth in high-voltage EV applications, although the timing remains uncertain amid industry cyclicality.