Vitesco Technologies and onsemi have announced a ten-year supply agreement worth $1.9 billion (€1.75 billion) for silicon carbide (SiC) products to enable its ramp in electrification technologies.
Under the agreement, Vitesco will invest 250 million (€230 million) in 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 Technologies’ growing SiC demand. In parallel, onsemi, a leader in intelligent power and sensing technologies, will continue to invest substantially in the end-to-end SiC supply chain.
Additionally, both companies will collaborate on optimised customer solutions for Vitesco Technologies. onsemi’s EliteSiC MOSFETs will be used by Vitesco Technologies to execute the recent orders and future projects for traction inverters and electric vehicle drives.
Andreas Wolf, CEO, Vitesco Technologies, noted that energy-efficient silicon carbide power semiconductors are at the beginning of a big surge in demand. That is why it is imperative for the company to get access to the complete SiC value chain together with onsemi.
Hassane El-Khoury, President and CEO, onsemi, said that the collaboration will enable Vitesco Technologies to address their customers’ demand for a longer range and higher performance in electric vehicles.
Also Read