ON Semiconductor Corporation (ON): Business Model Canvas [Dec-2025 Updated]

You're looking at how a major chipmaker is successfully navigating the massive shift toward electrification and AI infrastructure, and honestly, the story for ON Semiconductor Corporation is a textbook case of strategic focus. They are aggressively pruning low-margin legacy products to pour resources into high-growth intelligent power and sensing, specifically SiC (Silicon Carbide) and GaN (Gallium Nitride) technologies that are non-negotiable for next-gen EVs and AI data centers. With Q3 2025 revenue hitting $1,550.9 million, this pivot is clearly paying off as they lock in key design wins with global auto OEMs and cloud providers. This is a masterclass in portfolio pruning for profit. So, let's dive into the nine building blocks of their current Business Model Canvas to see precisely how they are engineering this higher-margin future.

ON Semiconductor Corporation (ON) - Canvas Business Model: Key Partnerships

You're looking at the alliances ON Semiconductor Corporation (ON) is making to lock down its position in high-growth power markets, and frankly, the list is impressive for a company of its scale. These aren't just casual chats; these are deep, technology-shaping collaborations.

The strategic collaboration with Innoscience to speed up the global rollout of Gallium Nitride (GaN) power devices is a big one. This non-binding Memorandum of Understanding (MoU) focuses on devices starting with 40-200V, aiming to overcome past cost and supply constraints that slowed GaN adoption in the low and medium-voltage segments. This move directly targets a market segment projected to hit a total addressable market of $2.9 billion by 2030, growing at a 42% compound annual growth rate from 2024 to 2030. It's about combining ON Semiconductor Corporation's system integration, drivers, and packaging expertise with Innoscience's high-volume, 200mm GaN-on-silicon wafer manufacturing.

Then there's the work with Nvidia, which is crucial for the AI infrastructure push. ON Semiconductor Corporation is actively working with Nvidia to support the transition to 800 Volts Direct Current (VDC) power architectures. This shift is designed to drive significant gains in efficiency and density for next-generation AI data centers. ON Semiconductor Corporation's intelligent power portfolio, leveraging both silicon and silicon carbide (SiC) technologies, provides solutions across the entire power journey, from high-voltage AC/DC conversion to precise regulation at the processor level. At the time of the announcement, ON Semiconductor Corporation held a market capitalization of $24.5 billion and maintained a gross profit margin of nearly 40%, showing the financial backing for these ambitious projects.

The company's success in the Electric Vehicle (EV) sector is highlighted by key design wins, such as those with Xiaomi. While specific financial details of the ON Semiconductor Corporation design win aren't public, the scale of Xiaomi's automotive success provides context for the opportunity. Xiaomi's EV unit generated RMB 29 billion in revenue in the third quarter of 2025, with EVs accounting for 97.6% of that, or RMB 28.3 billion. Furthermore, Xiaomi projected deliveries of more than 400,000 vehicles for the full year 2025. The engineering prowess in this sector is evident, with models like the Xiaomi YU7 achieving a torsional rigidity figure of 47,610 N·m/deg.

ON Semiconductor Corporation has also solidified its standing in renewable energy through major wins with Chinese solar inverter makers. The company secured $1.95 billion in long-term supply agreements (LTSAs) with leading global manufacturers of solar inverters, which includes securing business with eight of the top 10 solar inverter suppliers globally. This is a massive commitment to ON Semiconductor Corporation's power technologies in the utility-scale segment.

A concrete financial move to bolster its SiC offering was the acquisition of Qorvo's SiC JFET technology. ON Semiconductor Corporation completed this acquisition in the first quarter of 2025 for a cash consideration of $115 million. This deal is projected to expand ON Semiconductor Corporation's market opportunity by $1.3 billion by 2030, specifically targeting AI data centers and EV battery disconnects, leveraging SiC JFETs which offer the lowest on-resistance per chip area, using approximately half the space of other technologies.

Here's a quick look at the financial impact and scope of these technology-specific partnerships and acquisitions:

These partnerships are clearly focused on the high-growth megatrends you're tracking. The strategy is to own the power conversion chain across the most demanding applications:

• Accelerate GaN deployment via Innoscience's 200mm wafer capacity.
• Enable next-gen AI data center power with 800 VDC architecture alongside Nvidia.
• Strengthen SiC portfolio with Qorvo's JFETs, expecting a $1.3 billion market opportunity expansion by 2030.
• Secure high-volume revenue through LTSAs with eight of the top 10 solar inverter makers.
• Gain design relevance in the rapidly scaling EV market, exemplified by Xiaomi's projected 400,000+ 2025 deliveries.

Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Key Activities

You're looking at the core actions ON Semiconductor Corporation is driving right now to reshape its business, focusing on high-growth areas while cutting drag. Here's the quick math on what they are prioritizing as of late 2025.

SiC and vGaN development to accelerate wide bandgap semiconductor roadmap

ON Semiconductor Corporation is heavily focused on wide bandgap technologies, especially Silicon Carbide (SiC) and, by extension, Gallium Nitride (GaN) applications, which are critical for power efficiency in next-generation platforms. The company acquired Qorvo's SiC JFET technology, a move intended to unlock a total addressable market (TAM) opportunity estimated at $1.3 billion, projecting a 30% revenue compound annual growth rate (CAGR) through 2030 for that specific technology. The push is evident in key end-markets; for instance, Power Modules featuring EliteSiC™ are seeing strong year-over-year growth of approximately 40-50% in UPS systems, which support AI data centers. Furthermore, AI revenue for ON Semiconductor Corporation doubled year-over-year as of Q3 2025.

Manufacturing footprint rationalization, including a 9% workforce reduction

The company executed a Fab Right strategy to align its manufacturing capacity with current demand realities and focus on efficiency. This involved rationalizing the manufacturing footprint. While the specific 9% workforce reduction figure isn't directly confirmed in the latest reports, the operational changes are clear: Fab utilization stood at around 60%, with management expecting this to climb to the low 80% range following a business recovery. This utilization improvement is projected to yield as much as 900 basis points of Gross Margin increase once realized in the Profit and Loss statement, which typically lags by about two quarters. Inventory days were managed down to 119 days, nearing the target range of 100-120 days.

Product portfolio rationalization to exit non-core, lower-margin legacy products

A key activity involves surgically pruning the product catalog to focus on higher-margin opportunities. ON Semiconductor Corporation plans to eliminate approximately 5% of its 2025 revenue by exiting legacy and non-core products. This streamlining effort is already showing early benefits, particularly in the Advanced Solutions Group (AMG), which saw marginal improvement due to better management of lower-margin products. This aligns with the overall goal of improving long-term profitability.

Securing key design wins with global automotive and industrial OEMs

The focus on automotive electrification and industrial automation is translating into design wins. ON Semiconductor Corporation products are slated for use in 50% of all new Electric Vehicle (EV) models, including Plug-in Hybrid Electric Vehicles (PHEVs), with expected ramps in the second half of 2025. This is happening despite a challenging automotive market backdrop where, in Q3 2025, the Power Solutions Group (PSG) saw sequential revenue growth of 6%, indicating design momentum is taking hold.

Disciplined capital return to shareholders, targeting 100% of free cash flow

ON Semiconductor Corporation maintains a disciplined approach to capital allocation, explicitly targeting the return of 100% of free cash flow to shareholders, primarily through share repurchases. For the nine months year-to-date ending Q3 2025, the company returned $925 million via share repurchases, which was approximately 100% of the year-to-date free cash flow generated. Free cash flow for Q3 2025 alone was $372.4 million, a 22% year-over-year increase, representing 24% of that quarter's revenue.

Here is a snapshot of the key financial and operational metrics underpinning these activities as of the third quarter of 2025:

The company's cash position as of October 3, 2025, included cash and equivalents of approximately $2.9 billion, plus an additional $1.1 billion available under its revolving credit facility. Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Key Resources

You're looking at the core assets ON Semiconductor Corporation (ON) relies on to execute its strategy in late 2025. These aren't just things they own; they are the capabilities that drive their competitive edge, especially in high-growth areas like AI and electrification.

Vertical Integration in Silicon Carbide (SiC) Manufacturing

ON Semiconductor Corporation's control over its Silicon Carbide (SiC) supply chain is a major asset. This end-to-end control, from crystal growth to advanced packaging, is something few competitors can match, ensuring supply assurance and stringent quality control. This capability is vital for meeting the demanding requirements of automotive customers. The company is actively expanding this by building a state-of-the-art, fully integrated 8-inch SiC power device fab in the Czech Republic. This multi-year brownfield investment is planned to be up to $2 billion, supported by a €450 million government grant.

Intellectual Property (IP), including Acquired Vcore Power Technology for AI

The firm's IP portfolio is being strategically bolstered to capture the AI data center market. ON Semiconductor Corporation completed the acquisition of rights to Aura Semiconductor's Vcore power technologies, including associated intellectual property (IP) licenses, in the fourth quarter of 2025. This integration is designed to enhance power management solutions, enabling 'intelligent power solutions' that promise 30% higher power density and 20% improved thermal efficiency compared to conventional systems. This positions ON Semiconductor Corporation as one of the few firms capable of delivering end-to-end power solutions for modern AI infrastructure.

Treo Manufacturing Platform for High-Volume, High-Quality Production

The Treo Platform is a key resource for high-volume, high-quality analog and mixed-signal products. It is built on BCD (Bipolar-CMOS-DMOS) technology using an advanced 65nm process node. This platform supports the industry's widest voltage range, spanning 1V to 90V, and operating temperatures up to 175° C. Designs ported to this platform have shown significant improvements; for example, a 2.2x reduction in power consumption and a 43.1% reduction in chip area compared to the older 180nm CMOS technologies, yielding a 5.1x improvement in the PPA Figure-of-Merit (FoM). The strategic revenue goal for the Treo Platform is $1 Billion by 2030.

Strong Liquidity Position and Financial Strength

ON Semiconductor Corporation maintains a solid financial footing to fund these capital-intensive initiatives. As of late 2025, the company reports a liquidity position of roughly $2.47 billion in cash reserves. This is supported by strong operational cash generation in the third quarter of 2025. You can see the recent financial performance that underpins this resource:

Furthermore, year-to-date share repurchases reached $925 million, which was approximately 100% of its free cash flow.

Global Talent Pool Focused on Intelligent Power and Sensing R&D

The expertise within ON Semiconductor Corporation is concentrated on its core growth vectors: intelligent power and sensing. This talent base is critical for developing and integrating next-generation technologies. The focus areas for this global talent pool include:

• Developing 4th generation trench-based MOSFETs for SiC.
• Creating power solutions for AI data center processors using the Treo Platform.
• Advancing solutions for 800V EV architectures.
• Integrating IP like Vcore power technologies to address the complete power tree in AI data centers.
• Driving innovation in Gallium Nitride (GaN) power devices through partnerships.

The company's strategic clarity is underpinned by its commitment to these specialized R&D efforts. Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Value Propositions

Superior energy efficiency for next-generation automotive and AI platforms.

ON Semiconductor Corporation is delivering solutions where energy savings are paramount. A key example is the vertical Gallium Nitride (vGaN) platform, which management stated reduces energy loss by up to 50%. This efficiency gain is critical for managing the surging energy demands of AI data centers and improving the performance envelope of electric vehicles (EVs).

System-level value that reduces energy loss by up to 50% with vGaN.

The proprietary GaN-on-GaN technology in the vGaN solution is designed to conduct current vertically, which supports higher operating voltages and faster switching frequencies. This translates directly into smaller and lighter power systems for customers. The company is actively sampling both 700V and 1,200V vGaN devices to lead customers in the automotive and AI sectors.

High-performance power solutions (SiC/GaN) for greater EV range and lower system cost.

The focus on Silicon Carbide (SiC) is central to the value proposition in e-mobility. ON Semiconductor Corporation has a vertically integrated manufacturing flow for SiC, and management previously projected a future SiC market share target between 35% to 40%. The adoption of SiC is necessary for the industry trend toward 800V bus architectures in new EVs, which improves battery efficiency and charging times. The company reported Q3 2025 Automotive revenue of $787 million, up 7% sequentially, showing traction in this segment despite broader market cycles.

Intelligent sensing technologies for vehicle safety and industrial automation.

ON Semiconductor Corporation is actively reshaping its Intelligent Sensing Group (ISG) portfolio, moving focus toward Advanced Driver-Assistance Systems (ADAS) and machine vision applications. The company's AI revenue nearly doubled year-over-year in Q3 2025, with management expecting AI revenue to reach almost $250 million for the full year 2025. For the third quarter of 2025, the Intelligent Sensing Group (ISG) specifically generated revenue of $230 million.

Supply assurance and thermal performance for hyperscale data center deployments.

The value proposition for hyperscale data centers centers on high-density, high-efficiency power delivery, which is crucial as AI workloads drive massive power consumption. ON Semiconductor Corporation is collaborating with NVIDIA to advance 800V DC Power Solutions for next-generation AI Data Centers. Power Modules featuring their EliteSiC™ are targeted for modular Uninterruptible Power Supply (UPS) systems at the data center power point of entry, with strong year-over-year growth of approximately 40-50% expected in UPS systems. The company's Q3 2025 total revenue was $1.55 billion, reflecting the scale of its operations supporting these infrastructure needs.

Here's a quick look at how key technology platforms and segments performed in Q3 2025:

The benefits delivered through these technologies include:

• Enabling smaller and lighter power systems due to higher power density.
• Improving EV range through more efficient inverters.
• Reducing system cost in EV platforms.
• Delivering higher efficiency for solar and wind inverters in renewable energy.
• Supporting faster, smaller, and more rugged charging infrastructure.
• Enabling smarter factories and buildings via intelligent sensing for Industry 4.0.

ON Semiconductor Corporation (ON) - Canvas Business Model: Customer Relationships

You're looking at how ON Semiconductor Corporation manages its most important connections with the companies buying its chips. It's all about deep technical partnership, especially now that high-growth areas like AI are taking center stage. The relationship strategy is clearly bifurcated: deep, direct engagement at the top and broad support through the channel for everyone else.

Direct engagement focuses on securing major, long-term commitments. For instance, in China, ON Semiconductor secured strategic wins in high voltage traction inverters with a leading tier one for multiple local OEMs. This kind of win locks in future volume. Also, their focus on system-level value is clear through their partnership with NVIDIA to accelerate the transition to 800 VDC power solutions specifically for next-generation AI data centers. This isn't just selling a part; it's designing the whole power delivery system.

The support structure is heavily weighted toward technical assistance. The success in specialized areas shows this in action. The industrial image sensor funnel, for example, was up 55% year-over-year, showing traction in factory automation and inspection-areas that demand deep application knowledge from ON Semiconductor's engineers. Furthermore, to bolster their offering for these key customers, ON Semiconductor acquired Vcore Power Technology from Aura Semiconductor, which accelerates their roadmap for advanced multiphase controllers.

For the broader market, channel support is key to ensuring component availability. We can see inventory health improving, which suggests better alignment with distributor needs. ON Semiconductor's Days Inventory Outstanding (DIO) was 193 days in Q3 2025, a notable improvement from 207 days in the previous quarter. This signals that the channel is burning through stock, moving toward a more normalized supply situation. Historically, the company had a goal to push $1 billion worth of product through distribution globally.

The focus on high-growth segments is driving significant customer attention. The AI data center business was a standout performer, having approximately doubled year-over-year in Q3 2025. Management expects AI-related sales to reach almost $250 million for the full year 2025. This rapid growth requires a focused approach, which is also seen in the sampling of their breakthrough vertical GaN (vGaN) semiconductors, which are targeting lead customers in both automotive and AI.

Here's a quick look at how the major revenue-generating segments performed sequentially in Q3 2025:

The customer relationship strategy is also supported by ongoing product innovation that directly addresses customer pain points, such as the launch of the vGaN platform, which promises to reduce energy loss by up to 50%, making it ideal for AI data centers and electric vehicles. The company is defintely using strategic acquisitions and product launches to deepen its value proposition.

You can see the direct results of these customer-centric efforts in the overall financial performance:

• Q3 2025 Revenue reached $1,550.9 million.
• Non-GAAP Operating Margin expanded to 19.2%.
• Free Cash Flow grew 22% year-over-year to $372.4 million.
• Year-to-date share repurchases totaled $925 million, about 100% of free cash flow.

Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Channels

You're looking at how ON Semiconductor Corporation moves its intelligent power and sensing solutions to market as of late 2025. It's a mix of high-touch direct engagement and broad-reach distribution, all backed by significant internal manufacturing muscle.

The direct sales force is definitely the primary route for the biggest deals. This team manages the deep, long-term relationships required by major automotive and industrial OEMs, which are core to ON Semiconductor Corporation's strategy. For context on the scale these teams operate within, consider the third quarter of 2025 revenue hit $1,550.9 million, up from $1,468.7 million in the second quarter of 2025.

For the broader market, which includes smaller customers and a wider range of industrial applications, ON Semiconductor Corporation relies on a global network of distributors. This channel is crucial for volume and market penetration outside the top-tier OEM accounts. The company's focus on vehicle electrification, safety, and industrial automation means these partners need access to the latest silicon.

The internal manufacturing facilities are a key differentiator, especially the state-of-the-art semiconductor fabrication facility in East Fishkill, NY. This 300mm wafer fab is central to securing the supply chain for next-generation products. Specifically, it produces chips based on the Treo Platform, which is built on 65nm Bipolar-CMOS-DMOS (BCD) process technology. This platform supports an industry-leading voltage range of 1V to 90V and operating temperatures up to 175° C. As a concrete measure of output supporting these channels, ON Semiconductor Corporation shipped over 5 million Treo-manufactured units from the East Fishkill facility in the second quarter of 2025.

Supporting all these physical channels are the essential digital touchpoints. ON Semiconductor Corporation uses online technical resources and product documentation to help design engineers integrate their solutions. This self-service channel is vital for accelerating time-to-market for customers using the modular Treo Platform.

Here's a quick look at the financial scale underpinning these channel activities through the third quarter of 2025:

The company's channel strategy is clearly supported by its internal capacity, which is designed to meet high-reliability needs:

• The East Fishkill fab holds Category 1A Trusted Supplier accreditation.
• The Treo Platform targets automotive, industrial, and AI data center markets.
• Year-to-date share repurchases through Q3 2025 were approximately 100% of free cash flow.
• The company returned over 100% of free cash flow year-to-date through share repurchases as of Q2 2025.

Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Customer Segments

You're looking at where ON Semiconductor Corporation is placing its bets for revenue generation right now, late in 2025. It's about where the dollars are coming from this year, which helps map out their near-term strategy.

Here's a quick look at the revenue contribution from the primary customer groups based on the most recent reported quarter and projections for the full year:

The focus areas for each segment show you what ON Semiconductor is selling into those markets. For instance, the Automotive segment is heavily tied to the big industry shifts happening now.

Automotive OEMs (Electric Vehicles, ADAS, vehicle electrification)

• Electric Vehicles
• ADAS (Advanced Driver-Assistance Systems)
• Vehicle electrification

That Automotive segment pulled in $733 million in revenue during the second quarter of 2025. It's definitely the largest piece of the pie based on that snapshot.

Industrial Customers (Automation, sustainable energy, UPS systems)

• Automation
• Sustainable energy
• UPS systems (Uninterruptible Power Supply)

Industrial customers contributed $406 million in revenue for ON Semiconductor Corporation in Q2 2025. This segment shows the breadth of their power solutions use outside of just cars.

AI Data Centers and Cloud Infrastructure (intelligent power delivery)

• Intelligent power delivery

This is the high-growth area you need to watch. While the Q2 2025 revenue isn't broken out separately, the segment is expected to hit $250 million in total 2025 revenue. To give you context on the momentum, the AI data center business approximately doubled year-over-year in the third quarter of 2025.

Aerospace, Defense, and Security (emerging high-reliability applications)

• Emerging high-reliability applications

ON Semiconductor Corporation is also serving Aerospace, Defense, and Security customers, focusing on applications that demand the highest reliability standards. Specific revenue figures for this segment aren't detailed in the same way as the top two for Q2 2025.

Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Cost Structure

You're looking at the cost side of ON Semiconductor Corporation's business model as of late 2025. The nature of semiconductor fabrication means that fixed costs, especially related to the manufacturing base, are a major component of the cost structure.

High Cost of Goods Sold (COGS) due to complex semiconductor manufacturing is inherent to the business. Based on Q2 2025 results, the GAAP Gross Margin was 37.6% on revenue of $1,468.7 million. This implies a Cost of Goods Sold of approximately $916.5 million for the quarter, reflecting the significant material, labor, and overhead costs tied to wafer fabrication and packaging.

The pressure on profitability is evident when comparing margins year-over-year. The GAAP Gross Margin in Q2 2025 at 37.6% is significantly lower than the 45.2% reported in Q2 2024. Furthermore, the company recorded $235.8 million in excess and obsolete inventory charges in the first half of 2025, which directly pressures the cost of revenue.

The operational efficiency challenges are also reflected in the margin compression. While the specific impact of underutilization charges on gross margin by 900 basis points in Q2 2025 isn't explicitly detailed in the public filings, the sequential drop in the Non-GAAP Gross Margin from 40.0% in Q1 2025 to 37.6% in Q2 2025 suggests significant absorption issues or pricing pressures. The GAAP Operating Margin for Q2 2025 was 13.2%, down from 22.4% in Q2 2024.

Here's a quick look at the key margin and cost-related metrics from the second quarter of 2025:

ON Semiconductor Corporation is actively managing its cost base through strategic realignment. The Q1 2025 restructuring initiative, which involved cutting about 2,400 jobs (approximately 9 percent of the workforce), was designed to generate annualized savings. The expected annualized savings from this initial workforce reduction are between $105 million and $115 million.

The restructuring also involved significant non-cash charges. Management approved additional pre-tax non-cash impairment and accelerated depreciation charges ranging from $200 million to $300 million, primarily related to long-lived manufacturing assets. The employment-related charges for the initial reduction were estimated between $50 million and $60 million, mostly accounted for in the 2025 calendar year. Total restructuring expenses recorded over the first half of 2025 reached $588.5 million.

The company continues to fund its future technology roadmap, which includes investments in next-generation technologies. While specific R&D dollar amounts allocated solely to Silicon Carbide (SiC) and Gallium Nitride (GaN) development aren't broken out in the summary data, the overall strategy involves positioning the company for long-term growth through these investments.

Capital expenditures (CapEx) remain a necessary outlay for maintaining and expanding the manufacturing footprint to meet future demand, particularly in automotive and industrial markets. For the second quarter of 2025, ON Semiconductor Corporation reported Capital Expenditures of $78 million, which represented 5% of that quarter's revenue.

Key cost-related actions and figures include:

• Employment-related restructuring charges estimated at $50 million to $60 million in 2025.
• Projected annualized savings from the Q1 2025 workforce reduction: $105 million to $115 million.
• Non-cash impairment and depreciation charges related to restructuring: $200 million to $300 million.
• Total restructuring expenses for the first half of 2025: $588.5 million.
• Q2 2025 Capital Expenditures: $78 million.

Finance: draft 13-week cash view by Friday.

ON Semiconductor Corporation (ON) - Canvas Business Model: Revenue Streams

You're looking at how ON Semiconductor Corporation brings in the money, which is really about where their specialized chips are being bought. As of late 2025, the revenue streams are heavily tied to their focus on energy-efficient solutions for big trends like vehicle electrification and industrial automation.

The total top-line number for the third quarter of 2025 was reported at $1,550.9 million, which, frankly, was a solid beat against what the market was expecting.

ON Semiconductor Corporation structures its revenue around its core technology groups. Here's a look at the revenue breakdown from the third quarter of 2025 for those primary groups:

The sales of Intelligent Power Solutions, which includes critical components like Silicon Carbide (SiC), IGBTs, and power modules, are largely captured within the Power Solutions Group (PSG) revenue of $737.6 million for the quarter.

For Intelligent Sensing Solutions, which covers image sensors and analog sensors, the revenue is spread across the AMG and ISG. The Intelligent Sensing Group (ISG) itself brought in $230.0 million sequentially growing by 7%.

The company also tracks revenue by end-market, which gives you a clearer picture of demand drivers. You saw strong sequential momentum in the key areas they are targeting:

• Revenue from the Automotive segment grew 7% sequentially in Q3 2025, hitting $787 million for the quarter.
• Revenue from the Industrial segment grew 5% sequentially in Q3 2025, reaching $426 million.

Also, don't forget the AI data center business, which was noted as approximately doubling year-over-year, showing that strategic pivot is definitely paying off in terms of new revenue streams.