Onsemi plans to certify 200mm (8-inch) silicon carbide (SiC) wafers later this year and begin production in 2025.
Meanwhile, Onsemi's second quarter revenue was $1.735 billion, a decrease of $130 million from the first quarter of this year and $265 million from the second quarter of last year, and is expected to remain flat by the end of the year.
We are still completing the 8-inch certification task as planned this year, which refers to the entire process from substrate to wafer manufacturing plant. Therefore, this certification will be completed this year, and next year's revenue will meet our expectations, "said Hassane El Khoury, President and CEO of Onsemi.
As reflected in our recent supply agreement with Volkswagen Group, as we collaborate with leading global OEMs in Europe, North America, and China to increase production, we will also continue to strengthen our position in the automotive silicon carbide field
However, Onsemi's inventory has increased in this quarter, which is not an encouraging sign, partly due to the sales of wafer fabs in recent years. In times of market uncertainty, demand from many other companies is declining, so the forecast for the third quarter remains unchanged.
A few years ago, we divested four wafer fabs, and as demand rebounds, we will begin producing these products within our existing network, generating $160 million in fixed costs, "Hassane El Khoury said. Therefore, we must digest the inventory accumulated for the transformation of these wafer fabs. As we transfer it to the network, we begin to see this benefit
As we pointed out in the first quarter, the demand in the core market has stabilized. Due to customers maintaining a cautious attitude in 2024, inventory digestion continues, and the situation in some areas has improved, "said Hassane El Khoury.
