Vitesco Technologies, a powertrain supplier, has recently secured a significant deal with Rohm Semiconductor, worth over $1 billion, to obtain energy-efficient silicon carbide (SiC) power semiconductors. This long-term partnership between the two companies, which began in 2020, forms the foundation of the newly signed agreement.
Under this deal, Vitesco Technologies’ inverters integrated with SiC chips from Rohm will be utilized in electric vehicle (EV) powertrains by two major car manufacturers. The company plans to commence the supply of the first series project as early as 2024, surpassing the initial timeline expectations set when the collaboration was announced.
Vitesco CEO Andreas Wolf expressed the importance of this partnership, stating that it plays a crucial role in securing SiC capacities for Vitesco Technologies in the coming years. Additionally, Vitesco has also signed a separate long-term supply agreement with Onsemi, worth 1.75 billion euros, for silicon carbide products, further diversifying its supply chain.
Rohm Semiconductor, the SiC chip provider, commended Vitesco Technologies for its strategic partnership and highlighted the role of SiC in the automotive industry’s high-growth market. With an expected market share of over 30%, SiC is regarded as a pathfinder for achieving higher efficiency in EVs.
Kazuhide Ino, a member of Rohm’s board, managing executive officer, and CFO, emphasized the benefits of SiC, including its fast and low-loss switching capabilities, thermal resistance, and increased power density. SiC electronics contribute to reduced conversion losses compared to conventional silicon, allowing more energy stored in EV batteries to reach the drive system, resulting in extended range, or the potential for smaller, lighter, and more cost-effective batteries.
