Vitesco and Onsemi in billion-euro, long-term SiC supply deal
Powertrain specialist Vitesco Technologies and semiconductor manufacturer onsemi have inked a long-term supply agreement for silicon carbide (SiC) products worth €1.75 billion over ten years. In this way, Vitesco aims to secure its expected growth through electrification.
At the same time, Vitesco is investing €230 million in the chipmaker’s production capacities. The money will go into equipment for the production of SiC boules, SiC wafers and epitaxy. The equipment will be used to produce SiC wafers for Vitesco Technologies’ growing needs. In parallel, onsemi will continue to invest significantly in the end-to-end SiC supply chain.
In addition, the two partners will collaborate on the development of optimized customer solutions. In this effort, onsemi’s high-efficiency EliteSiC MOSFETS will be used by Vitesco Technologies in inverters and drives to serve Vitesco’s recent orders as well as future projects.
“Energy-efficient silicon carbide power semiconductors are facing a huge surge in demand. Therefore, it is strategically important for us to have access to the entire SiC value creation process together with our partner onsemi. This investment gives us supply security for a key technology for ten years and beyond,” said Andreas Wolf, CEO of Vitesco Technologies.
Hassane El-Khoury, CEO of onsemi, added: “With this collaboration, Vitesco Technologies can meet the needs of its customers for longer ranges and more power from electric vehicles. Onsemi provides outstanding performance, quality, delivery reliability and large-scale manufacturing for this purpose, based on decades of manufacturing experience in power semiconductors for high-volume automotive applications.”
SiC semiconductors are considered a key technology for vehicle electrification because they enable very efficient power electronics. This shortens charging times and increases the range of electric cars. Especially at high voltage levels such as 800 V, SiC inverters are more efficient than silicon models. Since 800 V is the prerequisite for fast and thus convenient high-voltage charging, experts see the raw material SiC at the beginning of a worldwide boom.
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