onsemi's $115 Million Acquisition of Qorvo's JFET SiC Business & UnitedSiC

2024-12-10

onsemi announced on December 10, 2024, that it has reached an agreement with Qorvo to acquire the SiC JFET technology business and Qorvo's subsidiary, United Silicon Carbide (UnitedSiC), for $115 million in cash. onsemi expects the transaction to be completed in the first quarter of 2025, subject to customary closing conditions. The acquisition aims to complement onsemi's extensive EliteSiC power product portfolio to meet the high efficiency and power density demands of AI data center power unit AC-DC stages, and to accelerate the company's readiness for emerging markets such as electric vehicle battery circuit breakers and solid-state circuit breakers (SSCB).

Overview of UnitedSiC and Qorvo's Strategic Shift

UnitedSiC, established in 1999, specializes in SiC transistor and diode solutions for efficient power conversion applications. In November 2021, Qorvo acquired UnitedSiC with the aim of expanding its product portfolio by integrating its SiC FET, JFET, and Schottky diode device technologies, enhancing its influence in the electric vehicle sector. However, Qorvo's President, Robert Bruggeworth, revealed during the fiscal year 2025 second quarter financial results meeting that the company is considering exiting the silicon carbide market, which may be one of the contexts for onsemi's acquisition.

Technology and Market Prospects

SiC JFET technology refers to high-performance normally-off JFET transistors with low on-resistance and low gate charge, achieving low conduction losses and reduced switching losses. As AI technology continues to evolve and the demand for data computing power grows, the energy efficiency and power density requirements for data centers will become increasingly stringent. onsemi, with its outstanding performance in the 650V SiC M3S MOSFET and PowerTrench® T10 MOSFET product series, meets the current industry demands and offers possibilities for the future high-efficiency and green operation of data centers.

Industry Competition and Cooperation

onsemi's main competitors in the SiC market include STMicroelectronics, Infineon, Wolfspeed, and ROHM Semiconductor. According to TrendForce data, onsemi ranked second in 2023 with a market share of 23.6%, just behind STMicroelectronics at 32.6%. This acquisition will further consolidate onsemi's leading position in this field and lay the foundation for future market expansion.

Future Development and Potential Risks

onsemi plans to expand its market opportunities by $1.3 billion over the next five years through this acquisition. However, Qorvo's previous consideration of exiting the silicon carbide market may introduce some uncertainty to onsemi's long-term strategy. Additionally, changes in the global economic environment and market demand may also impact the effectiveness of this transaction.

In summary, onsemi's acquisition not only strengthens its layout in the SiC technology field but also lays a solid foundation for the company's expansion in the AI data center and electric vehicle markets. At the same time, Qorvo's strategic shift provides onsemi with market entry opportunities. In the future, onsemi needs to effectively address potential risks, make full use of the advantages brought by this acquisition, and achieve long-term stable development.

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