ON Semiconductor Acquires Qorvo’s Silicon Carbide Business: Strengthening Power Semiconductor Portfolio

ON Semiconductor Acquires Qorvo’s Silicon Carbide Business: Strengthening Power Semiconductor Portfolio

On December 10, 2024, ON Semiconductor announced the acquisition of Qorvo’s silicon carbide (SiC) JFET technology business and its wholly-owned subsidiary, United Silicon Carbide (USC), for $115 million, approximately 834 million RMB. As a key component in power semiconductors, SiC technology is widely used in electric vehicles, renewable energy, power conversion, and industrial control applications, offering significant advantages in high-efficiency, high-power applications. This acquisition not only marks ON Semiconductor’s further expansion in the SiC field but also provides strong technological support for its growth in the global power semiconductor market.

1.Why did ON Semiconductor acquire Qorvo’s silicon carbide business?  

ON Semiconductor’s acquisition of Qorvo’s SiC technology and USC aims to enhance its technological leadership in the high-power semiconductor sector. SiC devices are extensively used in electric vehicles (EV), renewable energy, industrial power conversion, and smart grids. This acquisition will not only improve ON Semiconductor’s SiC R&D capabilities but also accelerate its entry into rapidly growing markets, addressing the increasing demand for high-efficiency, high-temperature, and high-power-density products.

2.What is the impact of this acquisition on the electric vehicle industry?

3.The electric vehicle (EV) sector will be one of the primary beneficiaries of this acquisition. SiC’s high efficiency and high-voltage characteristics make it ideal for applications such as battery management systems (BMS), charging infrastructure, and motor control. By acquiring Qorvo’s SiC technology, ON Semiconductor will be able to offer more advanced SiC MOSFETs and SiC diodes for the EV market, such as the FAN3025 SiC MOSFET and Cree/Wolfspeed’s C3D06060A SiC Diodes. These devices will help improve EV charging efficiency, extend battery life, and reduce overall energy loss, further accelerating ON Semiconductor’s market penetration in the EV sector.

3.What is the impact of this acquisition on the renewable energy and industrial power electronics sectors?

SiC devices are also widely used in renewable energy and industrial power electronics, especially in solar inverters, power conversion systems, and smart grids. SiC technology can effectively reduce energy loss and enhance conversion efficiency. With the acquisition of USC’s technology, ON Semiconductor will be able to offer more efficient SiC MOSFETs and diodes, such as Infineon’s IDH06G65C5 SiC Schottky Diodes, which are used in power management, wind energy control systems, and industrial automation. This acquisition will solidify ON Semiconductor’s leadership in power electronics technology, while meeting the growing demand in renewable energy and smart grids.

4.How will the acquisition affect ON Semiconductor’s product line and market position?

Following the acquisition of USC, ON Semiconductor’s silicon carbide (SiC) product line, especially in high-power semiconductor devices, will be significantly strengthened. SiC MOSFETs, diodes, and JFETs (such as the UF3C065060A SiC JFETs from USC) will become core products for ON Semiconductor in electric vehicles, power electronics, and industrial applications. The acquisition will not only enhance the performance of existing products but also boost its competitiveness in the global market. By integrating USC’s technology, ON Semiconductor will quickly expand into emerging markets and continue to grow its market share in sectors such as EVs, renewable energy, and smart grids.

5.What will be the financial impact of this acquisition on ON Semiconductor?

In the short term, this acquisition may have some financial impact on ON Semiconductor, particularly with investments in integration and technology development. However, in the long run, the growing demand for SiC technology will bring significant revenue opportunities, especially in high-growth sectors like electric vehicles and renewable energy. As technology integration progresses, ON Semiconductor is expected to achieve substantial revenue growth in the coming years, strengthening its leadership in the power semiconductor market.

6.Does this acquisition indicate ON Semiconductor’s future technological strategy?

Yes, this acquisition clearly signals ON Semiconductor’s future technological strategy, particularly its focus on the long-term development of silicon carbide (SiC) technology. As the electric vehicle, smart grid, and green energy sectors continue to grow rapidly, SiC devices will become a core technology in the power semiconductor industry. Through the acquisition of USC, ON Semiconductor will further solidify its technological leadership in this field, laying the foundation for future global market expansion.