The site will increase the company’s SiC boule production capacity by five times year-over-year and almost quadruple the number of its employees in Hudson by the end of 2022.
The expansion gives onsemi full control of its silicon carbide manufacturing supply chain, starting with the sourcing of silicon carbide powder and graphite raw material to the delivery of fully packaged SiC devices.
This will allow the company to provide its customers with the assurance of supply required to meet rapidly growing demand for SiC-based solutions. SiC is critical for enabling efficiency in electric vehicles (EVs), EV charging, and energy infrastructure and is an important contributor on the path to decarbonization.
The SiC total addressable market is projected to grow from $2bn in 2021 to $6.5bn in 2026, at a compound annual growth rate of 33%.
“In addition to market-leading efficiency of our products, our end-to-end vertically integrated solution in a supply-constrained environment is a compelling and differentiated competitive advantage,” said Simon Keeton, executive vice president and general manager Power Solutions Group at onsemi. “We have already expanded to a second building as we increased our substrate capacity and plan to continue ramping, allowing us to source our own cutting-edge SiC wafers for customer products.”
onsemi is currently the only large-scale supplier of both SiC and insulated-gate bipolar transistors (IGBT) solutions with end-to-end supply capability.
During its second quarter earnings call, the company announced $4bn of committed SiC revenue for the next three years through long-term supply agreements with a broad base of customers. It also said that it will triple last year’s silicon carbide revenue in 2022 and exceed $1bn in revenue in 2023.
The news from onsemi comes only days after President Biden signed the CHIPS and Science Act into law. The Act will strengthen supply chain resiliency and help avoid disruptions for critical components affecting every sector of the economy.
