ON Semiconductor Achieves Major Milestone with $1B Distribution Resales in Q3 2018

driving energy efficient innovations, today announces a monumental
milestone in the company’s history by reaching over $1 billion in
distribution resales. ON Semiconductor distribution partners have been
key to this tremendous milestone.

“ON Semiconductor and Avnet have a long and storied history together
that spans more than 55 years. As one of ON Semiconductor’s top three
distributors, the strength of our partnership has always been the
support we provide together for global customers throughout their
product lifecycle,” said Phil Gallagher, global president of electronic
components, Avnet. “For three years running, ON Semiconductor and Avnet
have been in an elite group of electronics components companies named by
Ethisphere as one of the World’s Most Ethical companies. Congratulations
ON Semiconductor for surpassing this $1B in resales milestone.”

ON Semiconductor is an industry leader in leveraging the distribution
channel. Over 60 percent of the company’s business results from
distribution sales, and distribution remains the fastest channel to
market. Over the past few years, ON Semiconductor has grown distribution
sales, which has attributed to over half of our revenue dating back to

“I am incredibly proud of our agile team’s ability to deliver massive
growth numbers on a yearly basis. Without the strong partnership and
solutions selling capabilities of our team and distribution partners,
this achievement would not have been possible,” said Jeff Thomson, vice
president of global distribution sales. “The support of our worldwide
distribution partners is fundamental to the success of ON
Semiconductor’s ongoing plans to increase market penetration and grow
revenue at a faster pace than the industry. The collaborative
relationships and progressive sales programs we foster with our channel
partners are an integral part of this ongoing plan.”

“Future Electronics has been a privileged partner of ON Semiconductor
for over 30 years. We enjoy working with partners who are collaborative,
open, fair and highly engaged,” said Omar Baig-Mirza, Future Electronics
executive vice president of sales and marketing. “ON Semiconductor is
all about bringing value to our customers. We share the same objectives
and, in many respects, the same business philosophies that have enabled
our companies to grow together. Future Electronics has tremendous pride
in being partnered with and representing ON Semiconductor worldwide.”

Last week, ON Semiconductor delivered strong earnings results.
Distribution contributed 63 percent of the company’s third quarter
revenue. Sales to distributors accounted for approximately 60 percent of
our revenues in 2017, 56 percent of our revenues in 2016, and 54 percent
of our revenues in 2015, with the year-over-year increases being
attributed to our acquisition of Fairchild, which had a greater
distribution mix than the company’s historical business.

Alignment in business practices and trust as a global partner has been
key with several distributors. “We realized that as we put in more
effort, we continue to find more business potential, especially in Japan
and Asia. We believe our DNA and passion for demand creation is
synergistic with ON Semiconductor’s business,” said Kiyoshi Nakashima,
Macnica president. “Global customer base expansion is one of our main
priorities, and this is well aligned with ON Semiconductor’s
expectations and global footprint. Through this expansion and synergy
with our line card, I strongly believe both of our organizations become
stronger, and our business will grow together.”

In addition to this accomplishment, ON Semiconductor was recognized in
2018 as a Fortune 500 company, was named as one of Fortune’s 100 Fastest
Growing Companies, was listed on the Dow Jones Sustainability Index and
received recognition from Ethisphere for the third year in a row as one
of the World’s Most Ethical Companies.

About ON Semiconductor

ON Semiconductor (Nasdaq: ON) is driving energy efficient innovations,
empowering customers to reduce global energy use. The company is a
leading supplier of semiconductor-based solutions, offering a
comprehensive portfolio of energy efficient power management, analog,
sensors, logic, timing, connectivity, discrete, SoC and custom devices.
The company’s products help engineers solve their unique design
challenges in automotive,
communications, computing, consumer, industrial, medical, aerospace and
defense applications
. ON Semiconductor operates a responsive,
reliable, world-class supply chain and quality program, a robust
compliance and ethics program, and a network of manufacturing
facilities, sales offices and design centers in key markets throughout
North America, Europe and the Asia Pacific regions. For more
information, visit http://www.onsemi.com.

This document contains “forward-looking statements,” as that term is
defined in Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical
facts, in this document could be deemed forward-looking statements,
particularly statements about the percentage of sales through
distribution, growth in sales through distributors, market share, and
growth rates. Forward-looking statements are often characterized by the
use of words such as “believes,” “estimates,” “expects,” “projects,”
“may,” “will,” “intends,” “plans” or “anticipates,” or by discussions of
strategy, plans or intentions. All forward-looking statements in this
document are made based on our current expectations, forecasts,
estimates and assumptions and involve risks, uncertainties and other
factors that could cause results or events to differ materially from
those expressed in the forward-looking statements. Factors that could
affect our future results or events are described under Part I, Item 1A
“Risk Factors” in our 2017 Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) on February 21, 2018 (“2017
Form 10-K”) and from time-to-time in our other SEC reports. Readers are
cautioned not to place undue reliance on forward-looking statements. We
assume no obligation to update such information, except as may be
required by law. You should carefully consider the trends, risks and
uncertainties described in this document, our 2017 Form 10-K and other
reports filed with or furnished to the SEC before making any investment
decision with respect to our securities.

ON Semiconductor and the ON Semiconductor logo are registered
trademarks of Semiconductor Components Industries, LLC. All other brand
and product names appearing in this document are registered trademarks
or trademarks of their respective holders. Although the company
references its Web site in this news release, such information on the
Web site is not to be incorporated herein.

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