Vitesco and onsemi sign SiC long-term supply deal
Vitesco Technologies and onsemi have entered into a 10-year long-term supply agreement worth USD 1.9 billion (EUR 1.75 billion) for SiC products to enable Vitesco's ramp in electrification technologies.
Vitesco Technologies is providing an investment of USD 250 million (EUR 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 the German automotive supplier's growing SiC demand. In parallel, onsemi will continue to invest substantially in its end-to-end SiC supply chain.
In addition, the companies will collaborate further as 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 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,” says Andreas Wolf, CEO of Vitesco Technologies in a press release.
