Onsemi (NASDAQ: ON) has announced a strategic move to acquire the silicon carbide junction field-effect transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo for $115 million in cash. This acquisition is expected to significantly expand Onsemi's market opportunity by $1.3 billion within 5 years.
The SiC JFET technology is set to enhance Onsemi's power portfolio, addressing the increasing demand for high energy efficiency and power density in the AC-DC stage in power supply units for AI data centers. It is noted that SiC JFETs offer the lowest on-resistance per chip area, using less than half of any other technology, and allow for the use of typical off-the-shelf drivers, resulting in faster development, reduced energy consumption, and lower system costs.
In terms of figures, the acquisition is expected to expand Onsemi's market opportunity by $1.3 billion within 5 years. The transaction, subject to customary closing conditions, is anticipated to be finalized in the first quarter of 2025.
Onsemi's Group President and General Manager of the Power Solutions Group, Simon Keeton, emphasized the increasing importance of reliable SiC JFETs as AI workloads become more complex and energy-intensive. The addition of Qorvo’s industry-leading SiC JFET technology is expected to offer customers another solution to optimize energy consumption and increase power density.
Onsemi is recognized as a Fortune 500® company and is included in the NASDAQ-100 Index® and S&P 500® Index, focusing on driving disruptive innovations in automotive and industrial end-markets, accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. Today the company's shares have moved -2.1% to a price of $66.24. For more information, read the company's full 8-K submission here.
