ON Semiconductor Acquires Qorvo's SiC Technology for $115M

In a strategic move, ON Semiconductor Corp. (ON) has announced its agreement to acquire Qorvo Inc.'s SiC JFET technology business for $115 million. This acquisition aims to strengthen ON's position in powering AI Data Centers and is expected to close in Q1 2025.

Date: 10-12-2024

AI Rating: 7

ON Semiconductor Corp. is making a significant investment by acquiring the SiC JFET technology business from Qorvo Inc. for $115 million. This acquisition is strategically timed as it aligns with the growing demand for energy-efficient solutions within AI Data Centers.

The report highlights that the SiC JFETs will enhance onsemi's existing EliteSiC power portfolio. The technology provides substantial advantages, including:

Lowest on-resistance per chip area, using less than half of any other technology.
Compatibility with off-the-shelf drivers, previously used with silicon-based transistors.

These factors contribute to quicker development cycles, reduced energy consumption, and lower system costs. Such improvements can create significant value for power supply designers and data center operators, possibly leading to increased orders and revenue for ON Semiconductor in the fast-evolving AI sector.

Moreover, the acquisition is likely to position ON effectively for future market opportunities, particularly in electric vehicle battery disconnects and solid-state circuit breakers. This proactive approach could bring about sustainable long-term growth and enhance investor confidence.

Stocks: ON QRVO