Vitesco pays onsemi for SiC capacity in $1.9bn ten year deal
Vitesco Technologies is securing silicon carbide (SiC) supply capacity worth $1.9 billion (€1.75 billion) in a ten year supply deal with onsemi.
The German tier one automotive supplier is paying onsemi $250 million (€230 million) upfront to secure that production capacity, and the two companies will collaborate to further optimize the design of traction inverters using onsemi’s EliteSiC MOSFETs.
The €230m will fund equipment for SiC boule growth, wafer production and epitaxy to secure access to SiC capacity where onsemi’s Czech plant is a key supplier. The equipment will be used to produce SiC wafers to support Vitesco Technologies’ growing SiC demand. In parallel, onsemi says it will continue to invest substantially into end-to-end SiC supply chain.
“Energy-efficient silicon carbide power semiconductors are at the beginning of a big surge in demand. That is why it is imperative for us to get access to the complete SiC value chain together with onsemi. With this investment we have a secure supply of a key technology over the next ten years and beyond,” said Andreas Wolf, CEO of Vitesco Technologies. This is key to reliably supplying Vitesco’s customers.
“This collaboration will enable Vitesco Technologies to address their customers’ demand for longer range and higher performance in electric vehicles. onsemi provides superior performance and quality, supply assurance, and manufacturing at scale of SiC technologies based on decades of experience in manufacturing power semiconductor products in high volume automotive applications,” said Hassane El-Khoury, president and CEO of onsemi.
www.onsemi.com; www.vitesco.com
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