ON Semiconductor and GT Advanced Technologies (GTAT) announced the execution of a five-year agreement, valued at a potential of $50 million. With this agreement, GTAT will produce and supply its CrystX™ silicon carbide (SiC) material to ON Semiconductor for use in high-growth markets and applications.

“We are extremely pleased to be partnering with ON Semiconductor, a recognized global leader in advanced semiconductors for power electronics applications,” said Greg Knight, president and chief executive officer at GTAT. “Our agreement today helps address the very steep trajectory for SiC as the preferred semiconductor substrate material for power electronics applications.”

“Combining ON Semiconductor’s 40 years of experience in high-volume wafer production with GTAT’s expertise and rapid advancement in SiC crystal growth will create a robust and scalable supply chain for the dynamic high-power wide bandgap market,” added Brent Wilson, senior vice president of global supply chain at ON Semiconductor. “We are thrilled to partner with GTAT to further develop the SiC wide bandgap material technology and strengthen our leadership in this rapidly developing field.”

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.