onsemi, a producer of power and sensing technologies, and Magna, an automotive supplier, have announced a long-term supply agreement for Magna to integrate onsemi’s EliteSiC power solutions into its eDrive systems.

Magna says its eDrive systems can improve cooling, acceleration and charging rates by incorporating onsemi’s EliteSiC MOSFET technology, enhancing EV efficiency and range. onsemi’s silicon carbide (SiC) manufacturing and ability to ramp production will help to improve Magna’s vertical integration and simplify its supply chain to satisfy EV demand for its SiC-based products.

As part of the agreement, Magna will invest $40 million in new SiC equipment at onsemi’s New Hampshire and Czech Republic sites to secure future supply.

“A secure supply of SiC chips is critical to continue delivering efficient eDrive systems,” said Diba Ilunga, President at Magna Powertrain. “Accordingly, we are both investing to grow SiC production capacity and establishing the commercial basis for long-term supply of SiC-based chips to advance our electrification strategy.”

Source: Magna