ON Semiconductor Projects Higher Silicon Content in Future NVIDIA AI Racks
ON Semiconductor anticipates significantly increased silicon content in NVIDIA's next-generation AI data center racks starting in 2027. The company's CEO outlined this at a recent conference, highlighting a shift to 800-volt architecture. Current financials show revenue declines amid a semiconductor trough, but stock performance has improved.
Substrate placeholder — needs reviewON Semiconductor's revenue is down 15% year-over-year, with fab utilization at around 68%. The stock rose 21% in a single week and is up 167% from its April 2025 low. The company produces chips for power management, sensors, and voltage regulation. Historically, the bull case was electric vehicles.
Every EV needs enormous amounts of silicon carbide to manage battery power, and ON built one of the largest SiC franchises in the industry.
the Morgan Stanley TMT Conference in March, a framework for AI data center racks was presented. Current racks operate at about 120 kilowatts with ON Semiconductor content valued at approximately $9,500 per rack. Next-generation racks, set to ship in the second half of 2027, will run at nearly 1 megawatt using 800-volt direct current architecture.
The move to 800-volt systems allows the same power with less current, enabling thinner cables and reduced copper usage. This change lowers costs and improves efficiency in data centers.
Every 800V rack NVIDIA ships in 2027 is worth roughly 11x more ON silicon than the 54V racks shipping today.
Transparency
Story details
Related Stories
Frontier AI Labs Report Rapid Capability Gains and AI-Written Code; Anthropic Calls for Coordinated Slowdown
Anthropic called for a slowdown or pause among labs developing the most advanced AI systems. The request appeared in a Thursday blog post from its research institute.
Ars TechnicaBumblebees Demonstrate Spontaneous Object Manipulation in Controlled Experiments
A study published in Science shows bumblebees can spontaneously use a ball as a ladder to reach a flower, marking the first demonstration of this type of problem-solving in an insect.
EuronewsSmall Phase 1 Safety Trial Tests First AI-Designed Coronavirus Vaccine Candidate
A Phase 1 safety study of an AI-designed protein vaccine against multiple coronaviruses enrolled 39 volunteers and reported no significant safety issues. A Phase 2 trial is now planned.