Canadian provider large Magna Worldwide has entered a 10-year settlement for silicon carbide microchips from semiconductor producer Onsemi.
Magna mentioned Thursday that it’s going to use Onsemi’s Elite SiC merchandise in its e-Drive methods. The silicon carbide chips will assist present higher cooling, sooner acceleration and faster charging occasions in comparison with normal silicon-based semiconductors, Magna mentioned.
The businesses “plan to supply items within the tens of thousands and thousands vary over the course of the settlement,” a Magna spokesperson mentioned in an e-mail. The worth of the deal was not disclosed.
“We consider {that a} safe provide of silicon carbide chips might be essential to our means to proceed delivering progressive and environment friendly eDrive methods for our prospects,” Magna Powertrain President Diba Ilunga mentioned in a press release.
Along with signing the provision settlement, Magna dedicated to spend $40 million (all figures in USD) on new silicon carbide tools for Onsemi at services in New Hampshire and the Czech Republic. The brand new tools will assist “guarantee entry to future provide,” the businesses mentioned in a information launch.
Magna is the most recent provider to safe a silicon carbide chip provide in current months. Silicon carbide chips are in excessive demand as a result of they carry out higher for electrical car purposes, however they’re usually costlier and harder to supply than a extra typical silicon semiconductor.
Magna’s take care of Onsemi comes simply 9 days after BorgWarner expanded a earlier settlement with the Scottsdale, Ariz., chip maker. That long-term deal, valued at greater than $1 billion, will present BorgWarner with Onsemi’s silicon carbide chips for the provider’s Viper energy modules.
In June, Vitesco Applied sciences signed a $1 billion settlement with Japanese microchip producer Rohm Co. that may provide the German powertrain provider with silicon carbide semiconductors via 2030.
Robert Bosch, in the meantime, mentioned in April that it could buy California microchip maker TSI Semiconductors and switch its Roseville, Calif., foundry right into a supply of silicon carbide microchips for EVs by 2026. Bosch, the world’s largest auto provider, plans to spend $1.5 billion to replace the Roseville facility.
Magna ranks No. 4 on the Automotive Information checklist of the world’s largest suppliers, with annual elements gross sales to automakers of $37.8 billion in 2022.