12 August 2022
onsemi expands silicon carbide production facility in New Hampshire
Power semiconductor IC supplier onsemi of Phoenix, AZ, USA has held a ribbon-cutting ceremony to inaugurate its new silicon carbide (SiC) facility in Hudson, New Hampshire. Signifying the importance of semiconductor manufacturing in the USA was the attendance of multiple guests of honor led by US Secretary of Commerce Gina Raimondo. Also present were US Senators Jeanne Shaheen and Maggie Hassan from New Hampshire, and Representatives Chris Pappas and Annie Kuster from the 1st and 2nd congressional districts of New Hampshire, respectively, as well as other local governmental dignitaries.
Picture: Ribbon-cutting ceremony at onsemi’s new SiC production facility in Hudson, NH. Attendees from left to right: Felicity Carson, senior VP & CMO, onsemi; US Senator Maggie Hassan (NH); Catherine Côté, VP & chief of staff to the CEO, onsemi; US Senator Jeanne Shaheen (NH); Tobin Cookman, senior VP of human resources, onsemi; Hassane El-Khoury, president, CEO & director, onsemi; US Secretary of Commerce Gina Raimondo; Joe Loiselle, VP of SiC operations & general manager of Hudson site, onsemi; US Representative Annie Kuster (NH-02); Simon Keeton, executive VP & general manager Power Solutions Group, onsemi; Thad Trent, executive VP & chief financial officer, onsemi; Rep. Chris Pappas (NH-01); Dr Wei-Chung Wang, executive VP of global manufacturing & operations, onsemi.
The site will increase the firm’s SiC boule production capacity by five times year-over-year and almost quadruple the number of its employees in Hudson by the end of 2022. The expansion gives onsemi full control of its SiC manufacturing supply chain, starting with the sourcing of silicon carbide powder and graphite raw material to the delivery of fully packaged SiC devices. onsemi says that this allows it to provide customers with the assurance of supply required to meet rapidly growing demand for SiC-based solutions. SiC is critical for enabling efficiency in electric vehicles (EVs), EV charging and energy infrastructure and is an important contributor on the path to decarbonization. The SiC total addressable market (TAM) is projected to increase at a compound annual growth rate (CAGR) of 33% from $2bn in 2021 to $6.5bn in 2026.
“In addition to market-leading efficiency of our products, our end-to-end vertically integrated solution in a supply-constrained environment is a compelling and differentiated competitive advantage,” reckons Simon Keeton, executive VP & general manager Power Solutions Group at onsemi. “We have already expanded to a second building as we increased our substrate capacity and plan to continue ramping, allowing us to source our own cutting-edge SiC wafers for customer products.”
onsemi claims to be the only large-scale supplier of both SiC and insulated-gate bipolar transistors (IGBT) solutions with end-to-end supply capability. During its second-quarter earnings call in early August, the firm announced $4bn of committed SiC revenue for the next three years through long-term supply agreements with a broad base of customers. It will triple last year’s silicon carbide revenue in 2022 and exceed $1bn in revenue in 2023, further emphasizing onsemi’s progress in SiC.
The inauguration ceremony comes only days after US President Joe Biden signed into law the CHIPS and Science Act, which aims to strengthen supply chain resiliency and help to avoid disruptions for critical components affecting every sector of the economy.