onsemi and Magna sign long-term SiC supply agreement

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onsemi and Magna, a mobility technology company and a leading automotive supplier, have announced a long-term supply agreement (LTSA).

The agreement will see Magna integrate onsemi’s EliteSiC intelligent power solutions into its eDrive systems.

By integrating onsemi’s EliteSiC technology, Magna eDrive systems will be able to offer better cooling performance and faster acceleration and charging rates, improving efficiency and increasing the range of electric vehicles (EVs).

Additionally, onsemi’s end-to-end silicon carbide (SiC) manufacturing capability, combined with its ability to ramp production quickly, will improve Magna’s vertical integration and simplify its supply chain in order to meet the growing demand for its SiC-based products for EVs.

“With range anxiety still a top deterrent to EV adoption, our technology enables them to go further, easing the transition to an electrified future,” said Asif Jakwani, senior vice president and general manager, Advanced Power Division, onsemi. “Our latest EliteSiC MOSFET technology enables increased power density and higher efficiency in traction inverters, resulting in improved gas-equivalent miles per gallon without compromising driving dynamics and safety.”

In accordance with the terms of the agreement, Magna will also invest approximately $40 million for the procurement of new SiC equipment at onsemi’s New Hampshire and Czech Republic facilities to ensure access to future supply.

Silicon carbide is a wide bandgap semiconductor substrate that is suitable for high-temperature, high-power applications such as electric vehicles, but it is incredibly difficult to produce. With a limited number of manufacturers and significant demand for SiC-based designs, OEMs and automotive suppliers are increasingly looking to secure long-term, reliable supply.

“We recognise the importance of securing a stable supply of SiC material in order to continue delivering innovative and efficient eDrive systems for our customers,” said Diba Ilunga, president Magna Powertrain.

“As the electric vehicle market continues to grow, we are taking proactive steps to secure access to future SiC supply to help support our electrification strategy and outpace the competition.”