Onsemi Upgrades to 200mm SiC Wafers

Onsemi, a leading semiconductor company, is making significant strides in the silicon carbide market. The company is set to qualify 200mm (8in) silicon carbide wafers later this year, with production expected to begin in 2025. This move comes as onsemi reported revenue of $1.735 billion, slightly down from the previous quarters but in line with expectations.

According to Hassane El-Khoury, president and CEO of onsemi, the company remains on track with its plans for silicon carbide expansion. El-Khoury stated, "We are still on track to qualify 8-inch wafers this year, which will lead to revenue generation starting next year. We are also strengthening our silicon carbide position in the automotive sector, with partnerships in Europe, North America, and China."

Despite the positive outlook, onsemi faced challenges with increasing inventory in the quarter, partly due to the selling of fabs in recent years. The company anticipates a flat forecast for Q3 amidst market uncertainty and fluctuating demand. El-Khoury explained, "We divested four fabs a couple of years ago, which has led to an inventory buildup. As demand picks up, we expect to see the benefits of this transition."

Onsemi is planning a $2 billion expansion of its silicon carbide production in the Czech Republic. This strategic move aims to capitalize on the growing demand for silicon carbide devices in various industries. The company's collaboration with the Czech government is crucial for securing incentives and establishing a state-of-the-art manufacturing facility.

Onsemi's silicon carbide devices are gaining traction in the electric vehicle (EV) market, with nearly 60% of battery electric vehicle (BEV) models incorporating their technology. The company's focus on efficiency and performance has attracted Chinese OEMs, driving adoption in the rapidly growing EV market. With the automotive industry shifting towards EVs, silicon carbide is expected to play a vital role in improving vehicle range and cost.