ON Semiconductor ON announced its partnership with Pony.ai — a leading autonomous driving technology company — to develop next-generation image sensing and processing technologies for machine vision.
The companies will work together to make advancements in imaging technologies for autonomous vehicles. Further, the collaboration is likely to aid in the development of solutions for enhancing reliability and scalability of mass-produced autonomous vehicles.
Hyundai-backed Pony.ai is a pioneer in autonomous mobility deployment in the United States and China. Notably, the company was the first to roll out daily robotaxi operation in China. It was also the first company to offer robotaxi service — BotRide — in California.
Collaboration is a Prudent Move
Technology companies have been competing with each other for developing advanced machine vision systems for autonomous vehicles. Markedly, the camera is considered a vital component for sensing in the autonomous vehicle technology.
In fact, image sensors along with processors in cameras are capable of generating significant information for ML applications such as self-driving vehicles.
ON Semiconductor is known for its expertise in image sensing and processing. It boasts innovative solutions and products in imaging, radar, LiDAR and ultrasonic sensing. In fact, it offers all four sensor modalities that are vital components in autonomous driving’s perception systems.
By utilizing Pony.ai’s extensive knowledge in autonomous driving, ON Semiconductor strives to expand its presence in the autonomous vehicles space.
Moreover, the companies will work to enhance perceptional capabilities of autonomous vehicles and accelerate industrialization of self-driving technologies.
ON Semiconductor Corporation Price and Consensus
ON Semiconductor Corporation price-consensus-chart | ON Semiconductor Corporation Quote
Autonomous Vehicles Space Holds Growth Prospects
The autonomous vehicle technology achieved rapid progress in 2019 with the launch of vehicles that feature Level-2 and Level-3 functionalities.
In fact, the commercial availability of Level-4 AV is no longer a distant dream as tech and automotive giants like Alphabet’s GOOGL Waymo, Tesla TSLA, Baidu, Lyft and Ford are focusing on development and testing of innovative solutions.
In fact, at the ongoing 2020 International CES, Intel’s INTC Mobileye showcased navigation capabilities without sensors.
With strong growth prospects in the autonomous vehicles space, ON Semiconductor’s efforts to boost presence in this arena are likely to yield favorably in the near term.
Although ON Semiconductor’s innovative product launches and partnerships enhance long-term growth prospects, rising debt burden is a headwind. We note that the company exited the third quarter of 2019 with net debt balance amounting to $2.69 billion.
Additionally, the company’s broader markets have been witnessing weaker demand trends. This has weakened fixed cost absorption, thus eroding margins. Moreover, stiff competition across several markets, especially in Japan, is a concern.
ON Semiconductor currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research