onsemi and Magna announced a long-term supply agreement (LTSA) for Magna to integrate onsemi’s EliteSiC intelligent power solutions into its eDrive systems.

By integrating onsemi’s industry-leading EliteSiC MOSFET technology, Magna eDrive systems can offer better cooling performance and faster acceleration and charging rates, improving efficiency and increasing the range of electric vehicles (EVs). Additionally, onsemi’s end-to-end silicon carbide (SiC) manufacturing capability, combined with its ability to ramp production quickly, improves Magna’s vertical integration and simplifies its supply chain to meet the growing demand for its SiC-based products for EVs.

Inverter for high-voltage EVs.

With range anxiety still a top deterrent to EV adoption, our technology enables Magna to go further, easing the transition to an electrified future. Our latest EliteSiC MOSFET technology enables increased power density and higher efficiency in traction inverters, resulting in improved gas-equivalent miles per gallon without compromising driving dynamics and safety.

—Asif Jakwani, senior vice president and general manager, Advanced Power Division, onsemi

Simultaneous with the signing of the LTSA, the companies entered a separate agreement through which Magna will also invest approximately $40 million for the procurement of new SiC equipment at onsemi’s New Hampshire and Czech Republic facilities to ensure access to future supply.

We believe that a secure supply of silicon carbide chips will be critical to our ability to continue delivering innovative and efficient eDrive systems for our customers. Accordingly, we are both investing to grow SiC production capacity, and establishing the commercial basis for long-term supply of SiC-based chips to advance our electrification strategy and outpace the competition.

—Diba Ilunga, President Magna Powertrain

Silicon carbide is a wide bandgap semiconductor substrate that is suited for high-temperature, high-power applications such as electric vehicles, but it is incredibly difficult to produce. With a limited number of manufacturers and significant demand for SiC-based designs, OEMs and automotive suppliers are increasingly looking to secure long-term, reliable supply.