- Vitesco Technologies is securing silicon carbide (SiC) supply
capacity worth $1.9 billion (€1.75
billion), to enable the enormous growth in electrification
- Vitesco Technologies is gaining access to this key
semiconductor technology by providing an investment in production
capacity of $250 million (€230
million) to onsemi
- In addition to investing in production capacity, the two
companies will collaborate to further optimize the traction
inverter system
REGENSBURG, Germany and SCOTTSDALE, Ariz., May 31, 2023
/PRNewswire/ -- Vitesco Technologies and onsemi today announced a
10-year long-term supply agreement worth $1.9 billion (€1.75 billion) for silicon carbide
(SiC) products to enable Vitesco Technologies' ramp in
electrification technologies. Vitesco Technologies, a leading
international manufacturer of modern drive technologies and
electrification solutions, is providing an investment of
$250 million (€230 million) 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 Technologies' growing
SiC demand. In parallel, onsemi, a leader in intelligent power and
sensing technologies, will continue to invest substantially into
end-to-end SiC supply chain.
In addition, Vitesco Technologies and onsemi will collaborate on
optimized customer solutions for Vitesco Technologies. onsemi's
highly efficient EliteSiC MOSFETs will be used by Vitesco
Technologies to execute the recent orders as well as 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. 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," said
Andreas Wolf, CEO of Vitesco
Technologies.
Hassane El-Khoury, president and
CEO of onsemi, commented: "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."
SiC semiconductors are 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 800 V, SiC inverters are more efficient
than silicon models. Since 800 V is the prerequisite for fast and
thus convenient high-voltage charging, SiC devices are at the
beginning of a worldwide boom.
Vitesco Technologies is a leading international developer
and manufacturer of cutting-edge drive systems for sustainable
mobility. With intelligent system solutions and components for
electric, hybrid, and internal combustion drive systems, Vitesco
Technologies is making mobility clean, efficient, and affordable.
The product portfolio includes electric drives, electronic
controls, sensors and actuators, and exhaust gas treatment
solutions. In 2022, Vitesco Technologies generated sales of around
€9.07 billion and employs a workforce of around 38,000 employees at
50 locations. Vitesco Technologies is headquartered in Regensburg,
Germany.
onsemi (Nasdaq: ON) is driving disruptive innovations to
help build a better future. With a focus on automotive and
industrial end-markets, the company is accelerating change in
megatrends such as vehicle electrification and safety, sustainable
energy grids, industrial automation, and 5G and cloud
infrastructure. onsemi offers a highly differentiated and
innovative product portfolio, delivering intelligent power and
sensing technologies that solve the world's most complex challenges
and leads the way to creating a safer, cleaner, and smarter world.
onsemi is recognized as a Fortune 500® company and included in the
S&P 500® index. Learn more about onsemi at
www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor
Components Industries, LLC. All other brand and product names
appearing in this document are registered trademarks or trademarks
of their respective holders.
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SOURCE Vitesco Technologies