August 12, 2022 – Onsemi (onsemi, NASDAQ: ON), a leader in smart power and intellisense technology, held a ribbon-cutting ceremony yesterday to celebrate its headquarters in Hudson, New Hampshire. , New Hampshire) inauguration of a silicon carbide (SiC) plant.
The site will enable ON Semiconductor to increase its SiC wafer capacity fivefold year-over-year by the end of 2022 and nearly quadruple its workforce in Hudson. This expansion gives ON Semiconductor full control of its SiC manufacturing supply chain, from the sourcing of SiC powder and graphite feedstock, to the delivery of packaged SiC devices. This enables ON Semiconductor to provide its customers with the necessary supply guarantees to meet the rapidly growing demand for SiC-based solutions. SiC is critical for improving the energy efficiency of electric vehicles (EVs), EV charging and energy infrastructure, and is an important factor in achieving decarbonization. The total potential market capacity of SiC is expected to grow from $2 billion in 2021 to $6.5 billion in 2026, with a compound annual growth rate of 33%.
Simon Keeton, executive vice president and general manager of ON Semiconductor’s Power Solutions Division, said: “Our products have market-leading energy efficiency, and our end-to-end vertically integrated approach is a compelling differentiator in a supply-constrained environment. “To enable substrate capacity growth, we have expanded into a second building and plan to continue ramping up to make our own cutting-edge SiC wafers available for customer products.”
ON Semiconductor is the only large-scale supplier with two-wire end-to-end supply capabilities for SiC and Insulated Gate Bipolar Transistor (IGBT) solutions. On its second-quarter earnings call last week, the company announced a commitment to $4 billion in SiC revenue over the next three years through long-term supply agreements with a broad customer base. This will triple its SiC revenue in 2022 from last year and achieve over $1 billion in revenue in 2023, further underscoring ON Semiconductor’s growing leadership in SiC.