onsemi has suddenly become a formidable competitor in SiC. They are projecting a revenue run-rate of $1 billion from SiC by the end of '23.
My speculation is that they might have won a design in with Tesla. The ramp is so fast that it is hard to see who else could be awarding these volumes. It seems unlikely that they had $1.5 billion in inverter design wins two years ago.
They are also sampling 200mm devices by the end of January. I'm still skeptical that this will quickly lead to commercial 200mm devices, but we'll see. If it does, they got an absolute steal in GTAT.
seekingalpha.com
As we outlined at our Analyst Day, our goal is to provide our customers in the industrial and automotive end markets with highly differentiated intelligent power and sensing solutions, and we are investing to achieve that goal. With GTAT market-leading silicon carbide substrate technology On Semi is now the only silicon carbide player in the industry with end-to-end capabilities encompassing modules, devices, and substrates. Our acquisition of GTAT has been a catalyst for key automotive customers to engage in long-term strategic partnerships with us, and we can expect GTAT to be a critical enabler of our impending ramp in our silicon carbide business. In fact, in Q4, 2021, we will be shipping silicon carbide product based revenue utilizing the GTAT substrate. I am also excited to announce that GTAT has delivered 200 millimeter bowls, which we have processed at our ON Semi manufacturing facility and we'll be sampling our first devices in January 2022. We welcome the GTAT team to the ON Semi family and look forward to expanding its capacity to support our silicon carbide growth plans. On a year-to-date basis, our power design win funnel grew by 75% year-over-year.
At the end of the Third Quarter, we have signed a LTSA or committed revenue of $2.5 billion over 3 years for our Power Solutions. Over $2 billion of this committed revenue is for our Silicon Carbide solutions for automotive and industrial applications and 2/3 of this committed revenue is for traction inverters for electric vehicles. We expect to exit 2023 with Silicon Carbide revenue run rate, of about $1 billion. The demand of our Intelligent Power and Sensing Solutions in our strategic end markets, continues to outpace our current supply capability. The strength and demand is driven by secular mega trends such as vehicle electrification, ADAS, Industrial Automation, and transition to alternative energy from fossil fuel-based power generation. For the third quarter, automotive and industrial end markets together grew 42% year-over-year. |
