Silicon carbide (SiC) is attracting attention as a semiconductor material essential for achieving efficiency in electric vehicles (EVs), EV charging, and energy infrastructure, and is making a significant contribution to decarbonization. With the overall SiC market expected to grow at an average annual rate of 33%, semiconductor companies are focusing on expanding SiC production capacity.

On the 12th, ON Semiconductor (hereinafter referred to as ON Semi) held a ribbon-cutting ceremony to celebrate the completion of its SiC facility in Hudson, New Hampshire, USA.

The facility is expected to increase Onsemi's silicon carbide (SiC) boule production capacity fivefold year-over-year and quadruple the number of employees at the Hudson plant by the end of 2022.

This expansion gives Onsemi complete control over its SiC manufacturing supply chain, starting with sourcing SiC powder and graphite raw materials to supply fully packaged SiC devices. With this, Onsemi is confident that it has secured the additional supply necessary to meet the rapidly growing demand for SiC-based solutions for its customers.

ON Semiconductor is the only large-scale supplier of SiC and high-power switching semiconductor (IGBT) solutions with end-to-end supply capabilities. In its Q2 earnings call last week, ON Semiconductor announced that it expects to generate approximately $4 billion in SiC revenue over the next three years, driven by long-term supply agreements with a broad customer base. Driven by its SiC leadership, ON Semiconductor forecasts that its SiC revenue will triple last year's revenue by 2022 and exceed $1 billion by 2023. ON Semiconductor forecasts that the overall SiC market will grow from $2 billion in 2021 to $6.5 billion in 2026, at a compound annual growth rate (CAGR) of 33%.

“In addition to the market-leading efficiencies of ON Semiconductor’s products, our end-to-end vertically integrated solutions provide a strong and differentiated competitive advantage in a supply-constrained environment,” said Simon Keaton, vice president and general manager of ON Semiconductor’s Power Solutions Group. “As we continue to ramp and increase capacity on our substrates, we have already expanded into a second building, enabling us to source cutting-edge SiC wafers for our customers’ products.”