Vitesco Tech Inks USD 1.9 Billion Silicon Carbide Supply Deal with Onsemi By CIOTechOutlook Team

Vitesco Tech Inks USD 1.9 Billion Silicon Carbide Supply Deal with Onsemi

CIOTechOutlook Team | Friday, 02 June 2023, 12:13 IST

To support Vitesco Technologies' expansion into electrification technologies, Vitesco Technologies and Onsemi have established a 10-year long-term supply deal worth USD 1.9 billion (EUR 1.75 billion) for silicon carbide (SiC) products.

To ensure Onsemi has access to SiC capacity, Vitesco Technologies, a top global producer of contemporary drive technologies and electrification solutions, is investing USD 250 million (EUR 230 million) in new machinery for SiC boule growth, wafer fabrication, and epitaxy. To meet the expanding SiC demand of Vitesco Technologies, the machinery will be used to make SiC wafers. Onsemi, a pioneer in intelligent power and sensor technology, will keep making significant investments throughout the whole SiC supply chain.

Together with Onsemi, Vitesco Technologies will also work on client solutions that are optimised for Vitesco Technologies. Vitesco Technologies will carry out the most recent orders as well as upcoming projects for traction inverters and electric vehicle drives using Onsemi's extremely efficient EliteSiC MOSFETs.

“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,” Andreas Wolf, CEO of Vitesco Technologies, said.

Hassane El-Khoury, President and CEO of Onsemi, said, “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.”