- Silicon Carbide (SiC) showed clear advantage over Silicon in numerous applications including inverters for electric vehicles where Tesla adopted SiC in 2018 and NIO announced transition to SiC in 2021.
- SiC is 10x stronger, has 9x higher dielectric stronger, 2.2x higher thermal conductivity, and 2x better Band Gap than Silicon for more efficient, compact, and lightweight driving systems.
- 65% of ON's revenue is derived from automotive and industrial end markets where both industries are growing at 22% baseline growth rate, valuations likely to follow a similar rate.
- Players in different parts of semiconductor supply chain signaled anticipation of an economic slowdown of some form, ON is prone to economic cycles due to economic-sensitive automotive and industrial markets.
- By understanding the technology ON prides itself in, we find that ON's strategic advantage is clear, well defined, and aligns with the megatrends of the 2020-2030 decade.
For further details see:
Understanding ON Semiconductor's Growth Sustainability Through Silicon Carbide