August 12, 2022 - ON Semiconductor Corporation (onsemi, NASDAQ: ON), a leader in smart power and smart sensing technologies, held a ribbon-cutting ceremony yesterday US time to celebrate the opening of its silicon carbide (SiC) facility in Hudson, New Hampshire.
The site will enable ON Semiconductor to quintuple its SiC wafer capacity year-over-year by the end of 2022 and almost 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 assurance to meet the rapidly growing demand for SiC-based solutions. SiC is critical to improving the energy efficiency of electric vehicles (EVs), EV charging and energy infrastructure, and is an important factor in achieving decarbonisation. The total potential market volume for SiC is expected to grow from US$2 billion in 2021 to US$6.5 billion in 2026, a compound annual growth rate of 33%.
Our products offer market-leading energy efficiency and our end-to-end vertically integrated solutions are a compelling competitive differentiator in a supply-constrained environment," said Simon Keeton, executive vice president and general manager of ON Semiconductor's Power Solutions Division. To enable growth in substrate capacity, we have expanded to a second building and plan to continue to ramp up to make our own cutting-edge, cutting-edge SiC wafers available for our customers' products."
ON Semiconductor is the only large-scale supplier with dual-line end-to-end supply capabilities for SiC and insulated gate bipolar transistor (IGBT) solutions. During its second quarter earnings call last week, the company announced a $4 billion SiC revenue commitment over the next three years through long-term supply agreements with a broad customer base. This will enable it to triple its SiC revenues in 2022 compared to last year and achieve more than US$1 billion in 2023, further underscoring ON Semiconductor's growing leadership position in SiC.
