SiC’s Role in the Future of Electric Vehicles
Onsemi has projected a significant increase in the demand for silicon carbide (SiC) devices in electric vehicles (EVs) by 2025, driven by the growing adoption of 800-volt (V) charging systems. SiC’s higher energy density, improved efficiency, and lighter weight compared to traditional silicon devices make it an ideal choice for key EV components like traction inverters, on-board chargers (OBCs), and DC-DC converters. With the automotive industry increasingly shifting toward 800V architectures to reduce charging times by up to 50%, SiC devices are positioned to play a crucial role in enhancing EV performance. Onsemi noted that nearly all new EV models introduced at the 2024 Beijing Auto Show featured SiC-based 800V designs, signaling strong market momentum.
Onsemi’s Outlook Amid Market Challenges
While Onsemi’s third-quarter earnings report for 2024 showed overall semiconductor demand below expectations, the demand for SiC in the automotive sector continues to outpace other segments. Despite a decline in overall EV sales year-on-year, Onsemi’s automotive revenue increased by 5% in Q3 2024, reaching $951 million. The company remains optimistic about the future of SiC in the automotive market, particularly in China, where EV adoption is growing rapidly. Despite softer demand in North America and Europe, industrial markets tied to EVs, aerospace, and utility-scale solar are expected to help drive SiC demand in the long term.
Strategic Focus on SiC and Long-Term Growth
Onsemi’s strong focus on SiC technology positions the company to benefit from the continued rise in EV adoption and the shift to 800V charging. The company’s outlook for SiC demand remains positive, with expectations that SiC will become an even more integral component in future EV designs. Onsemi is confident that demand for SiC devices will continue to grow at a faster rate than the overall automotive market, with adoption increasing across China, followed by the US and Europe. Despite short-term market fluctuations, Onsemi believes that SiC will be a critical enabler of future EV efficiency and performance, ensuring its importance in the global automotive market through 2025 and beyond.
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