This Is ‘Largest Secular Growth Area For Semiconductors’ In Decades, Onsemi Exec Says | IBD

TL;DR

On Semi's EVP discusses the company's strategic initiative in the electrification of vehicles, particularly the use of silicon carbide chips for high efficiency and long-range electric vehicles.

Transcript

chips are a critical component to technological advancements and here today to talk about the role on semi is playing in these Innovations is Simon Keaton he's EVP and general manager of the Power Solutions group at on semi thanks so much for joining me today Simon thanks for having me it's great to be here so what would you say is the most importa... Read More

Key Insights

• 🧡 Silicon carbide chips are crucial for the electrification of vehicles, providing high efficiency and longer range.
• 🐿️ On Semi has invested heavily in vertical integration to secure the supply chain for silicon carbide chips.
• ✊ Apart from automotive applications, silicon carbide chips also have potential in industrial sectors such as solar energy and power transmission.
• 😥 The adoption rate of silicon carbide in EVs is accelerating, with a projected tipping point by 2026.
• 😃 The electrification of vehicles and autonomous driving are the biggest growth opportunities for On Semi in the next decade.
• 🥳 On Semi's top priority for 2023 is execution and serving customers, ensuring timely delivery of parts.

Questions & Answers

Q: What makes silicon carbide chips superior to other similar chips?

Silicon carbide chips have unique material properties that make them highly efficient and suitable for high voltage and switching applications. They offer better efficiency and longer range in electric vehicles compared to silicon chips.

Q: Are there any supply chain issues associated with silicon carbide chips?

While silicon carbide chips are not as plentiful as silicon, On Semi has invested in vertical integration of the supply chain, including wafering, EPI, and device manufacturing. This allows them to guarantee supply to their customers.

Q: Which parts of the electric vehicle ecosystem does On Semi work in?

On Semi provides solutions for the internal electrification of powertrains in electric vehicles, including traction inverters, onboard chargers, DC to DC converters, and 48-volt off-board chargers. They also offer image sensors for autonomous driving.

Q: How does On Semi navigate the competitive landscape in the semiconductor sector?

While competition is good for driving innovation, On Semi offers a unique skill set, particularly in silicon carbide chips, as the only vertically integrated supplier. They have established partnerships and supply agreements with car manufacturers.

Summary & Key Takeaways

• On Semi is investing heavily in the electrification of vehicles, focusing on providing solutions for electric vehicles (EVs) using silicon carbide and insulated bipolar transistors.

• Silicon carbide chips have unique material properties, making them ideal for high voltage, high efficiency, and high switching applications, especially in traction inverters for EVs.

• On Semi owns the complete supply chain for silicon carbide chips, ensuring a guaranteed supply to customers, although it is more expensive than silicon chips.