GT Advanced Technologies (GTAT) and ON Semiconductor announced on March 17 the execution of a five-year agreement which GTAT will produce and supply its CrystX™ silicon carbide (SiC) material to ON Semiconductor. The agreement is valued at a potential of US$50 million.

Greg Knight, president and chief executive officer at GTAT, said, “Our agreement today helps address the very steep trajectory for SiC as the preferred semiconductor substrate material for power electronics applications.”

By leveraging ON Semiconductor’s high-volume wafer production and GTAT’s expertise in SiC crystal growth, the two companies aim to create a scalable supply chain for the dynamic high-power wide bandgap market, noted Brent Wilson, senior vice president of global supply chain at ON Semiconductor.

High-growth applications such as electric vehicle (EV) traction systems, hybrid and plug-in EV’s, solar and energy storage, and EV charging all require and depend on a robust supply of high-quality and cost-competitive SiC material. ON Semiconductor will use GTAT’s proprietary 150mm SiC crystal to make its SiC wafers, to further accelerate its role as a vertically integrated supplier within the SiC supply chain and to maintain its world-class supply. The agreement will promote the availability of industry-leading SiC to help engineers solve their most unique design challenges.