On Semiconductor Renewing Focus on Higher-Margin Products, Says 10-K

On Semiconductor is evaluating its product portfolio, looking to allocate capital and R&D resources to “accelerate growth in high-margin products and end-markets by moving away from non-differentiated products” with lower gross margins, said the company’s 10-K report Tuesday at the SEC. The aim is to reduce complexity, streamline the organization and improve operating efficiencies, it said. The company’s focus is on gross margin expansion and achieving significant revenue growth in its automotive, industrial and communication infrastructure segments while being “opportunistic” in other end markets, it said. On shipped about 64.3 billion units last year, compared with 66.2 billion units in 2019, a 3% drop year on year. New CEO Hassane El-Khoury plans to take a surgical knife to product sectors that aren't in “strategic alignment” with the company’s “growth margin expansion initiatives,” he told investors this month (see 2102010020).