Onsemi (formerly ON Semiconductor) and GT Advanced Technologies (GTAT), a producer and manufacturer of of silicon carbide (SiC) and sapphire materials, have entered into a definitive agreement under which onsemi will acquire GTAT for $415 million in cash. The transaction is expected to better position onsemi to secure and grow a supply of SiC and meet demand for SiC-based solutions in the sustainable ecosystem, including electric vehicles, electric vehicle charging, and energy infrastructure. Onsemi plans to invest in expanding GTAT’s research and development efforts to advance 150-mm and 200-mm SiC crystal growth technology while also investing in the broader SiC supply chain, including Fab capacity and packaging. The acquisition also reinforces onsemi’s commitment to make substantial investments in disruptive, high-growth technologies, consistent with the company’s recently announced 2025 target financial model described during its analyst day presentation, the company said in a press release. Onsemi capital expenditures are expected to be approximately 12% of revenue in 2022 and 2023, as it invests to drive differentiation and leadership, including in SiC. The transaction is not expected to affect the company’s 2025 target financial model, the company said. The acquisition is expected to close in the first half of 2022. Both company’s boards of directors have unanimously approved the transaction.