ON Semiconductor’s Silicon Carbide Strategy

 

【Lansheng Technology News】The US semiconductor company Onsemi’s strategy in silicon carbide has always been very firm. It is expected to grow rapidly in the electric vehicle market. The largest growth will come from the demand for silicon carbide in the electric vehicle market. This segment of the market Growth is expected to outpace other businesses.

Silicon carbide is composed of silicon and carbon and is suitable for power chips. It is classified as a third-generation semiconductor. The use of silicon carbide technology can reduce the energy loss of the entire vehicle system, improve engine efficiency, and increase the mileage that can be driven on a single charge.

Development strategy：

ON Semiconductor is a major player in the silicon carbide field, with competitors including Wolfspeed, Qorvo and others.

The core is capacity expansion and cost reduction. ON Semiconductor is actively expanding silicon carbide production capacity and achieving scalable production capacity through capital-effective investment. The company's expansion and expansion are based on existing factory facilities and do not require the establishment of new factories. Silicon carbide production capacity is also expanded through mergers and acquisitions.

Sign long-term supply agreements with automotive customers

ON Semiconductor has signed long-term supply agreements with customers to ensure on-schedule shipments and provides products to strategic customers who have signed long-term supply agreements. This cooperation model is considered a win-win arrangement for both parties.

Current automotive customers include Volkswagen, BMW, Hyundai, NIO, Mercedes-Benz and JK Motors.

The importance of the Chinese market

China is an important market for ON Semiconductor. The company has signed long-term supply agreements with China's three leading new energy vehicle companies, and has extended this relationship to the top local traditional vehicle manufacturers. It has also promoted the first domestically produced silicon carbide technology. The launch of local brand electric vehicles.

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