Vitesco Technologies and onsemi Sign $1.9 Billion Long-Term SiC Supply Agreement
Vitesco Technologies and onsemi, a leading global semiconductor company, announced their 10-year long-term supply agreement worth $1.9 billion (EUR 1.75 billion) for silicon carbide (SiC) products. The agreement will enable Vitesco Technologies to ramp up its electrification technologies and meet the growing demand for SiC in the automotive industry.
SiC is a semiconductor material that is used in a variety of applications, including electric vehicles, power electronics, and industrial applications. SiC is a more efficient material than silicon, which makes it ideal for use in high-performance applications.
Under the terms of the agreement, Vitesco Technologies will provide an investment of $250 million (EUR 230 million) to onsemi for new equipment for SiC boule growth, wafer production and epitaxy. The equipment will be used to produce SiC wafers to support Vitesco Technologies' growing SiC demand. In parallel, onsemi will continue to invest substantially into its end-to-end SiC supply chain.
"We are excited to partner with Vitesco Technologies to support their electrification ambitions," said Hassane El-Khoury, president and CEO of onsemi. "This agreement is a testament to our leadership in SiC technology and our commitment to meeting the growing demand for SiC in the automotive industry. We look forward to working with Vitesco Technologies to deliver innovative and efficient solutions to our mutual customers."
The agreement between Vitesco Technologies and onsemi is a significant development in the automotive industry. The agreement will help to ensure that Vitesco Technologies has a secure supply of SiC, which will enable the company to meet the growing demand for electrification solutions. The agreement is also a testament to the leadership of both companies in the SiC market.