31 May 2023
onsemi signs 10-year, $1.9bn deal to supply SiC power devices for Vitesco’s traction inverters and EV drives
Vitesco Technologies of Regensburg, Germany (which develops and manufactures drive technologies and electrification solutions for electro-mobility) and intelligent power and sensing technology firm onsemi of Scottsdale, AZ, USA have announced a 10-year long-term supply agreement worth $1.9bn (€1.75bn) for silicon carbide (SiC) products to enable Vitesco’s ramp in electrification technologies.
Specifically, Vitesco is providing an investment of $250m (€230m) to onsemi for new equipment for SiC boule growth, wafer production and epitaxy to secure access to SiC capacity. The equipment will be used to produce SiC wafers to support Vitesco’s growing SiC demand. In parallel, onsemi will continue to invest substantially into its end-to-end SiC supply chain.
In addition, the two firms will collaborate on optimized customer solutions for Vitesco. onsemi’s EliteSiC MOSFETs will be used by Vitesco to execute the recent orders as well as future projects for traction inverters and electric vehicle (EV) drives.
“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,” says Vitesco’s CEO Andreas Wolf. “With this investment we have a secure supply of a key technology over the next ten years and beyond,” he adds.
“This collaboration will enable Vitesco Technologies to address their customers’ demand for longer range and higher performance in electric vehicles,” notes onsemi’s president & CEO Hassane El-Khoury. “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,” he claims.
Silicon carbide is a pivotal technology for electrification, enabling highly efficient power electronics leading to reduced charging times and longer range for electric cars. Especially at high voltage levels such as 800V, SiC inverters are more efficient than silicon models. Since 800V is the prerequisite for fast and thus convenient high-voltage charging, SiC devices are at the beginning of a worldwide boom, it is reckoned.