onsemi vs. STMicroelectronics: Which EV Chip Stock Is the Better Buy? - Zacks Investment Research

Amid the rapid growth of electric vehicles and AI technologies, the semiconductor industry is experiencing renewed momentum. This article provides a detailed comparison between onsemi and STMicroelect... Read original →

onsemi’s lead in silicon carbide and 900V architectures is triggering a cascade across the automotive electronics stack—its SiC modules are forcing Tier 1s to abandon legacy silicon in OBCs and traction inverters. STMicroelectronics, despite betting on AI-mobility convergence, struggles with underutilized European fabs and delayed EUV adoption, inflating its cost base. Geopolitically, onsemi’s deep ties with Chinese EV makers like NIO shield it from IRA-related supply chain risks while bolstering local resilience. In response, Infineon and NXP may accelerate SiC co-investments, while Texas Instruments could leverage Treo Ethernet to penetrate zonal E/E architectures. Over the next 18 months, as 800V+ systems become premium EV standard, onsemi’s high ROIC and AI data center diversification will command a valuation premium; ST risks marginalization if fab economics don’t improve by 2027.