“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,” Magna Powertrain President Diba Ilunga stated in a press release.
In addition to signing the availability settlement, Magna dedicated to spend $40 million (all figures in USD) on new silicon carbide tools for Onsemi at amenities in New Hampshire and the Czech Republic. The new tools will assist “ensure access to future supply,” the businesses stated 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 automobile purposes, however they’re usually costlier and tougher 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 Technologies signed a $1 billion settlement with Japanese microchip producer Rohm Co. that can provide the German powertrain provider with silicon carbide semiconductors by 2030.
Robert Bosch, in the meantime, stated in April that it will 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 News record of the world’s largest suppliers, with annual components gross sales to automakers of $37.8 billion in 2022.