Onsemi Expands SiC Portfolio with Acquisition of a Wafer Fab and United SiC
Onsemi, a leading player in silicon carbide (SiC) technology, has recently made two significant acquisitions to strengthen its position in the power semiconductor market. The company has purchased a chip manufacturing facility in DeWitt, New York, and acquired SiC JFET technology along with Qorvo's subsidiary, United Silicon Carbide.
Onsemi, a leading player in silicon carbide (SiC) technology, has recently made two significant acquisitions to strengthen its position in the power semiconductor market. The company has purchased a chip manufacturing facility in DeWitt, New York, and acquired SiC JFET technology along with Qorvo's subsidiary, United Silicon Carbide.
Onsemi Acquires DeWitt Wafer Fab
Onsemi purchased the DeWitt wafer fab for $20 million. This facility, previously funded with $100 million by the state of New York, was once leased to NexGen, a startup focused on gallium nitride (GaN) semiconductors for power systems, which declared bankruptcy last year. Onsemi also acquired NexGen's intellectual property and equipment, potentially signaling plans to expand its GaN semiconductor production.
This acquisition aligns with Onsemi’s broader strategy, especially as Micron Technology prepares to construct a $100 billion mega-fab nearby in Clay, New York. Proximity to this burgeoning semiconductor hub is expected to provide Onsemi with strategic advantages, including talent access and potential synergies in the local semiconductor ecosystem.
$115M Acquisition of SiC JFET Technology and United Silicon Carbide
Onsemi also announced the $115 million cash acquisition of Qorvo’s SiC JFET business and its subsidiary United Silicon Carbide. This deal, expected to close in Q1 2025, aims to bolster Onsemi’s EliteSiC™ power product portfolio. The acquisition is set to accelerate Onsemi's market penetration in emerging sectors such as:
AI data center power units (AC-DC conversion).
Electric vehicle (EV) battery disconnect systems.
Solid-state circuit breakers (SSCBs).
The acquisition is projected to expand Onsemi's addressable market opportunity by $1.3 billion over the next five years. SiC JFET technology offers unmatched power density and efficiency, reducing energy consumption and system costs for advanced power applications.
Strengthened Partnership with Denso for ADAS
In addition to these acquisitions, Onsemi has reinforced its collaboration with Denso Corporation, a global automotive supplier, to advance technologies in autonomous driving (AD) and advanced driver-assistance systems (ADAS). Onsemi has supplied smart automotive sensors to Denso for over a decade, contributing to safer, more connected vehicles. As a testament to their deepened partnership, Denso plans to acquire Onsemi shares in the open market to further solidify their long-term cooperation.
Strategic Implications for Onsemi
These recent moves highlight Onsemi’s aggressive expansion in SiC and power semiconductor technologies. By acquiring complementary assets and strengthening industry partnerships, Onsemi is positioning itself to capture significant market share in high-growth areas like EVs, AI data centers, and autonomous driving.
