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onsemi Celebrates Expansion of Silicon Carbide Production Facility in New Hampshire

onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies,
celebrated the inauguration of its silicon carbide (SiC) facility in Hudson,
New Hampshire with a ribbon cutting ceremony. Signifying the importance of
this event and manufacturing of semiconductors in the U.S. were the
attendance of multiple guests of honor led by U.S. Secretary of Commerce
Gina Raimondo. Also present were U.S. Senators Jeanne Shaheen and Maggie
Hassan from New Hampshire, Representative Chris Pappas from the 1st
congressional district of New Hampshire and Representative Annie Kuster from
the 2nd congressional district of New Hampshire as well as other local
governmental dignitaries.

The site will increase the company’s SiC boule production capacity by five
times year-over-year and almost quadruple the number of its employees in
Hudson by the end of 2022. The expansion gives onsemi full control of its
silicon carbide manufacturing supply chain, starting with the sourcing of
silicon carbide powder and graphite raw material to the delivery of fully
packaged SiC devices. This allows onsemi to provide its customers with the
assurance of supply required to meet rapidly growing demand for SiC-based
solutions. SiC is critical for enabling efficiency in electric vehicles
(EVs), EV charging, and energy infrastructure and is an important
contributor on the path to decarbonization. The SiC total addressable market
is projected to grow from $2B in 2021 to $6.5B in 2026, at a compound annual
growth rate of 33%.

“In addition to market-leading efficiency of our products, our end-to-end
vertically integrated solution in a supply-constrained environment is a
compelling and differentiated competitive advantage,” said Simon Keeton,
executive vice president and general manager Power Solutions Group at
onsemi. “We have already expanded to a second building as we increased our
substrate capacity and plan to continue ramping, allowing us to source our
own cutting-edge SiC wafers for customer products.”

onsemi is the only large-scale supplier of both SiC and insulated-gate
bipolar transistors (IGBT) solutions with end-to-end supply capability.
During its second quarter earnings call last week, the company announced $4B
of committed SiC revenue for the next three years through long-term supply
agreements with a broad base of customers. It will triple last year’s
silicon carbide revenue in 2022 and exceed $1 billion in revenue in 2023,
further emphasizing onsemi’s progress toward SiC leadership.

The inauguration ceremony comes only days after President Biden signed the
CHIPS and Science Act into law. The Act will strengthen supply chain
resiliency and help avoid disruptions for critical components affecting
every sector of the economy.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better
future. With a focus on automotive and industrial end-markets, the company
is accelerating change in megatrends such as vehicle electrification and
safety, sustainable energy grids, industrial automation, and 5G and cloud
infrastructure. onsemi offers a highly differentiated and innovative product
portfolio, delivering intelligent power and sensing technologies that solve
the world’s most complex challenges and leads the way to creating a safer,
cleaner, and smarter world. onsemi is recognized as a Fortune 500R company
and included in the S&P 500R index. Learn more about onsemi at
www.onsemi.com.

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