Magna and US chip specialist onsemi – Cooperation in semiconductors for electric cars

Simultaneously with the signing of the LTSA, the companies concluded a separate agreement through which Magna will invest around 40 million dollars for the procurement of new SiC facilities in onsemi's New Hampshire and Czech Republic plants to ensure access to future supplies.

“We believe that a secure supply of silicon carbide chips is crucial for us to continue delivering innovative and efficient eDrive systems to our customers,” says Diba Ilunga. “Accordingly, we are investing both in the expansion of SiC production capacities and in creating the commercial basis for a long-term supply of SiC-based chips, to advance our electrification strategy and maintain competitiveness.”

What does this mean?

Silicon carbide is a wide bandgap semiconductor substrate that is ideal for high-temperature and high-power applications, such as electric vehicles, but it is incredibly difficult to manufacture. The bandgap (English band gap) is a term from semiconductor physics, specifically: the physical “band model” that describes the electrical conductivity of crystals, metals, semiconductors. Semiconductors with a large bandgap, so-called wide-bandgap semiconductors, are increasingly replacing traditional silicon technology in power electronics. Materials such as silicon carbide are superior to pure silicon in terms of breakdown behavior, saturation drift speeds of charge carriers, and thermal conductivity.

With a limited number of manufacturers and a significant demand for SiC-based designs, OEMs and automotive suppliers are increasingly reliant on a long-term, reliable supply. Here, supplier Magna secures important supply chains.