Semiconductor technology continues to innovate, and market segments are gaining momentum. With the continuous development of semiconductor technology, many market segments are poised for growth, which will achieve very high growth from 2018. We believe these markets are supported by exciting global megatrends.

　　 Demand for innovative semiconductors and general-purpose electronics solutions is strong in the automotive industry like the  electronic degree of powertrains, the number of electric and hybrid vehicles, and consumer acceptance continue to increase. In addition, the range of use and value of general-purpose electronic devices in passenger vehicles havenot slowed down, but have been exposed to more body and interior systems, light-emitting diode (LED) lighting, and the most compelling advanced driver assistance systems (ADAS). Driven by this, we will certainly achieve the American Society of Automotive Engineers (SAE) Level 4 L4 autopilot in the next ten years.

　　 Another market that is expected to show explosive growth is the Internet of Things (IoT) and the Industrial Internet of Things (IIoT, Industry 4.0). The  companies like ON Semiconductor, the combination of activities and technologies of companies are increasingly providing practical, and integrated IoT end-to-end solutions for engineers from a variety of industries. These solutions cover sensing, signal processing, power management and secure wireless connectivity. Devices including ON Semiconductor's energy harvesting, battery-free smart passive sensors are supported by tools such as the Analog Networking Development Kit (IDK), which reduces barriers to use and makes the transition from concept to practical solution easier in a more intuitive, faster, and less-cost way.  

　　 Other markets driven by continued innovation in semiconductor technology include smart cities and smart homes, machine vision and robotics, mobile health care and wearables, and all areas of ON Semiconductor's high level of focus and active participation.

　　ON Semiconductor continues to invest in the automotive and industrial end markets, and through its many years of investment in high-growth segments and highly differentiated products in the automotive, industrial and communications terminal markets, ON Semiconductor has completely transformed its business type. Our current business is driven by the sustainable and long-term growth of the fastest growing semiconductor end market rather than being driven by macroeconomics and industry cyclicality as previous years. 

     Our business traction in high-growth areas such as ADAS, electric vehicles, silicon carbide, machine vision and industrial power management continues to accelerate, and we are very optimistic about the prospects for 2018. We believe that we are still in the early stages of realizing investment income in the automotive and industrial terminal markets. And the increasing popularity of applications such as ADAS, electric vehicle (EV)/hybrid (HEV), machine vision, and robotics will further accelerate our revenue. Therefore, We continue to invest in the automotive and industrial end markets because we believe these markets will be the fastest growing semiconductor end market.

　　 As mentioned earlier, we have a broad and diverse product lineup to support automotive electronics applications, and we are a global leader in image sensor technology. Cameras have become extremely important and relevant because they are used not only for cars to support ADAS and autonomous driving, but also for consumer electronics applications such as drones and motion cameras, as well as security and surveillance and machine vision, etc.

　　 In addition, ON Semiconductor is able to offer a semiconductor solution for the entire power spectrum. We benefit from the semiconductor solutions' demand for our power modules and power management. Leveraging our expertise in consumer electronics power modules enables us to address many application areas and provide integrated system solutions. ON Semiconductor's sensing, power management, interconnected devices and system solutions cover many markets and provide innovative, robust solutions to application challenges, providing our customers with high-performance, differentiated end products.