ONSemi will expand its production capacity of silicon carbide (SiC), a next-generation semiconductor material, by five-fold.
ONSemi recently held a ceremony for the completion of its SiC plant in Hudson, New Hampshire, USA. The company plans to increase the production capacity of core wafer material SiC through the facility by five times compared to the previous year. It also plans on quadrupling the workforce in Hudson by the end of this year.
With the expansion, ONSemi has secured an 'end-to-end' SiC manufacturing supply chain from sourcing SiC powder and graphite raw materials to supplying finished products and the supply capacity to respond to the rapidly increasing demand for SiC solutions. SiC is considered to be a next-generation semiconductor material that increases the efficiency of electric vehicles (EV), EV charging, and energy infrastructure.
In its second quarter earnings report, ONSemi announced that it will generate roughly $4 billion in SiC-related revenue over the next three years through long-term supply contracts with various customers. It is predicted to triple its SiC sales this year compared to last year as it strengthens its leadership in the SiC market. ONSemi's sales target for SiCs next year is over $1 billion.
The global SiC market is expected to grow from $2 billion last year to $6.5 billion by 2026. It is expected to have a high annual growth rate of 33%.
“In the SiC market, where supply has been limited, ONSemi can provide a differentiated competitive advantage with our 'end-to-end' vertically integrated solutions on top of product efficiency,” said Simon Keeton, Vice President of ONSemi Power Solutions Group. “We are now able to source cutting-edge SiC wafers for our customers’ products,” he adds.
By staff reporter Dong-joon Kwon djkwon@etnews.com