Vitesco Technologies and onsemi, two major players in the field of electrification and power technologies, have entered into a strategic alliance. They’ve inked a long-term supply contract, spanning 10 years, valued at a massive $1.9 billion (€1.75 billion). This agreement is mainly to facilitate the provision of silicon carbide (SiC) products, pivotal to Vitesco Technologies’ aggressive push towards electrification solutions.
Why It Matters
This partnership assumes significance as SiC products are becoming increasingly vital in the production of energy-efficient power electronics, which ultimately lead to reduced charging times and extended range for electric cars. Particularly at high voltage levels, SiC inverters have shown superior efficiency compared to their silicon counterparts. With 800 V being the key for quick and convenient high-voltage charging, SiC devices are poised to experience a global surge in demand.
Under the terms of the agreement, Vitesco Technologies is committing an investment of $250 million (€230 million) into onsemi. These funds are earmarked for acquiring new equipment for SiC boule growth, wafer production, and epitaxy. This move is to ensure secure access to SiC capacity and to meet Vitesco Technologies’ increasing SiC requirements.
On the flip side, onsemi, known for its prowess in intelligent power and sensing technologies, pledges to continue making significant investments in the SiC supply chain. Furthermore, the deal entails the usage of onsemi’s highly efficient EliteSiC MOSFETs by Vitesco Technologies to fulfill both recent and future orders for traction inverters and electric vehicle drives.
Andreas Wolf, CEO of Vitesco Technologies, emphasizes that gaining access to the complete SiC value chain in partnership with onsemi is of paramount importance due to the anticipated surge in demand for energy-efficient silicon carbide power semiconductors.
Echoing this sentiment, Hassane El-Khoury, president and CEO of onsemi, states that this collaboration will enable Vitesco Technologies to better meet their customers’ demands for improved performance and longer range in electric vehicles. The partnership leverages onsemi’s track record of providing superior performance, quality, and supply assurance, as well as their manufacturing experience at scale with SiC technologies in high volume automotive applications.