ON Semiconductor, Magna Ink Strategic Agreements for Silicon Carbide for EV Market

By Robb M. Stewart

Technology company ON Semiconductor has teamed up with automotive supplier Magna International to invest in silicon carbide for the growing electric vehicle market, and will see Magna integrate Onsemi technology to improve the range and efficiency of electric vehicles.

Onsemi said Thursday it has struck a long-term supply agreement for Magna to integrate its EliteSiC power solutions into the Canadian company's e-drive systems, which promises better cooling performance and faster acceleration and charging rates, improving efficiency and increasing the range of electric vehicles.

For Magna, the deal is expected to simplify its supply chain to meet demand, the companies said.

Under a separate agreement, Onsemi said Magna will invest about $40 million to buy new silicon carbide 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 useful for high-temperature, high-power applications such as electric vehicles.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

July 27, 2023 08:05 ET (12:05 GMT)

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