onsemi and VW Group Cement Strategic Collaboration on Silicon Carbide Technology for Next-Generation Electric Vehicles with Strategic Agreement

Rhea-AI Summary

onsemi (Nasdaq: ON) has announced a strategic agreement with Volkswagen AG to supply semiconductor modules for a complete traction inverter solution tailored for VW’s next-generation electric vehicle (EV) platform. This partnership aims to enhance driving performance and quality in VW vehicles, leveraging onsemi’s EliteSiC 1200 V traction inverter power modules. The collaboration, which builds on over a year of joint development, includes advanced features from onsemi's extensive portfolio, such as IGBTs and MOSFETs, ensuring a robust supply chain for VW's rapidly scaling EV production.

Positive

• Strategic agreement with Volkswagen to supply traction inverter modules, potentially increasing market share in the EV sector.
• Development of EliteSiC 1200 V power modules enhances product offerings and operational efficiency.
• Collaboration with VW leverages onsemi's extensive semiconductor portfolio, supporting robust supply chains.

Negative

• None.

The two companies are developing a complete traction inverter solution for the OEM’s modular car platform for electric vehicles (EVs)

PHOENIX--(BUSINESS WIRE)-- onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, today announced that it signed a strategic agreement with German Volkswagen AG (VW) to provide modules and semiconductors that enable a complete electric vehicle (EV) traction inverter solution for VW’s next-generation platform family. The semiconductors are part of an overall system optimization and provide a solution that will support the front and rear traction inverters in the VW models.

As part of the agreement, onsemi will deliver in a first step its EliteSiC 1200 V traction inverter power modules. The EliteSiC power modules are pin to pin compatible to easily scale the solution to different power levels and types of motors. Teams from the two companies have been collaborating for more than a year on the optimization of the power modules for the next-generation platform, with pre-production samples under development and evaluation.

“The superior performance and quality of onsemi’s traction inverter modules together with our joint efforts to create the best system solution enable us to deliver the outstanding driving experience and quality customers expect from a VW group vehicle,” said Karsten Schnake, head of the operative and strategic semiconductor taskforce COMPASS at Volkswagen AG. “onsemi’s broad portfolio of intelligent power and sensing solutions further allows us to offer cutting-edge technologies and features in our EVs, from the traction inverter and beyond. Besides this milestone, onsemi with its balanced production facility layout in the U.S., Asia and Europe, including the plant in the Czech Republic, is the perfect match to support our strategic markets with all high-voltage solutions and more.”

With 19 wafer fabrication and packaging manufacturing sites, onsemi provides VW with more than 500 different devices – including IGBTs, MOSFETS, image sensors and power management integrated circuits (PMICs). In addition to its versatile portfolio, onsemi has a vertical silicon carbide (SiC) production chain, which includes volume boule growth, wafering, substrate, epitaxy, device fabrication, best-in-class integrated modules and discrete package solutions, that perfectly supports a secured supply chain.

“Our broad manufacturing footprint – including a resilient end-to-end SiC supply chain – empowers onsemi to deliver the supply assurance OEMs demand,” said Simon Keeton, executive vice president and general manager, Power Solutions Group, onsemi. “Our investments in ramping production globally, especially in silicon carbide, further allow us to support VW’s rapidly scaling EV production.”

The inverter solution for EVs consists of onsemi’s EliteSiC 1200 V 3x Half-Bridge Modules, and this system solution supports both axle inverters covering a wide range of power.

For more information on EliteSiC, visit onsemi.com.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is recognized as a Fortune 500^® company and included in the S&P 500^® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005504/en/

Stefanie Cuene

Head of Public Relations

onsemi

(602) 315-3778

Stefanie.Cuene@onsemi.com

Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

(602) 244-3437

investor@onsemi.com

Tobias Schwerdtfeger

Spokesperson Procurement & Supply Chain

Volkswagen AG

tobias.schwerdtfeger@volkswagen.de

Source: onsemi

FAQ

What is the new agreement between onsemi and Volkswagen about?

onsemi has signed a strategic agreement with Volkswagen to supply semiconductor modules for a complete traction inverter solution for VW's next-generation electric vehicle platform.

How will the partnership with Volkswagen impact onsemi's operations?

The partnership allows onsemi to enhance its product offerings and increase market presence in the electric vehicle sector.

What products are involved in onsemi's agreement with Volkswagen?

The agreement involves onsemi's EliteSiC 1200 V traction inverter power modules among other semiconductor solutions.

When did onsemi announce its agreement with Volkswagen?

onsemi announced the agreement on January 25, 2023.

What stock symbol represents onsemi?

onsemi is traded under the stock symbol 'ON' on Nasdaq.