ON Semiconductor Joins Hand With BorgWarner For $1B Silicon Carbide Deal

ON Semiconductor Corp (NASDAQ:ON) inked a deal with BorgWarner Inc (NYSE:BWA) to expand their strategic collaboration for silicon carbide (SiC) for a total lifetime deal value of over $1 billion.

As per the deal, BWA plans to integrate ON's EliteSiC 1200 V and 750 V power devices into their VIPER power modules.

On the other hand, ON will offer high-performance EliteSiC technology supporting the EV traction market and successful adoption in high-volume automotive applications.

"The integration of EliteSiC technology in the traction inverter enables increased gas-equivalent miles per gallon (MPGe), which helps alleviate range anxiety - one of the key barriers to EV adoption. With onsemi's chip-to-system level support and a track record of execution, we are able to provide industry-leading SiC-based solutions to BorgWarner at an accelerated pace to support its go-to-market requirements," stated Simon Keeton, Executive Vice President and General Manager, Power Solutions Group, ON.

Also Read: ON Semiconductor's Shift from Supplier to Solutions Provider: Analyst Forecasts Earnings Surge and Gross Margin Expansion

Price Action: ON shares are trading down by 0.40% at $103.92 on the last check Tuesday.