A 10-year supply agreement worth U$1.9bn has been signed by Vitesco Technologies and Onsemi for silicon carbide (SiC) products, enabling Vitesco Technologies to accelerate the development of its electrification technology.
Vitesco Technologies will invest US$250m in Onsemi for new equipment for SiC boule growth, wafer production and epitaxy to secure access to SiC capacity. The equipment will then be used to manufacture SiC wafers to support Vitesco Technologies’ growing SiCs demand. Onsemi will continue investing in an end-to-end SiC supply chain.
The pair will also collaborate on optimized customer solutions for Vitesco Technologies. Highly efficient EliteSic metal-oxide-semiconductor field-effect transistors –MOSFETs – will be used by Vitesco Technologies to complete recent orders (and future projects) for traction inverters and electric vehicle drives.
“Energy-efficient silicon carbide power semiconductors are at the beginning of a big surge in demand,” said Andreas Wolf, CEO of Vitesco Technologies. “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 10 years and beyond.”
“This collaboration will enable Vitesco Technologies to address their customers’ demand for longer range and higher performance in electric vehicles,” added Hassane El-Khoury, president and CEO of onsemi. “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.”