US firm Onsemi signs multi-year deal with VW to power next generation of EVs

The US semiconductor supplier company Onsemi has signed a multi-year contract with Volkswagen (VW) to be the primary supplier of power modules for the German car manufacturer's next generation of electric vehicles. Onsemi, which also operates in Czechia and recently announced the expansion of production at its manufacturing facility in Rožnov pod Radhoštěm, was selected to power the VW Group’s vehicle lineup across several brands, which includes Škoda Auto. Onsemi will provide VW with an integrated module solution that can scale across all power levels, from high to low power traction inverters, so as to be compatible for all vehicle categories.

The deal is expected to bring technological advances in electric cars, as Onsemi's silicon carbide-based technologies enable higher performance, reduce energy loss and increase the range of electric cars, the companies said in a joint press release. The Volkswagen Group will also benefit from Onsemi’s plans to expand manufacturing in Europe and establish an end-to-end production facility for the traction inverter system in Europe. Onsemi announced in June that it was going to invest USD 2 billion to build a silicon carbide production plant in the Czech Republic.