On, a leader in smart power and smart sensing technologies, announced that it has locked in a $1.95 billion Long-term Supply Agreement (LTSA) to provide smart power technology to a number of leading PV inverter manufacturers. This further strengthens On’s position as a leading power semiconductor supplier in this fast-growing segment.

On provides superior strip technology, optimized and customized module design and packaging to enable PV inverter suppliers to gain a competitive advantage in time-to-market, product development, supply flexibility and robust quality assurance. With these advantages, ON signed LTSA contracts with 8 of the top 10 PV inverter suppliers, which fully confirms the recognition of many customers as a trusted industry partner.

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Asif Jakwani, senior Vice President and General Manager, Advanced Solutions, On Semiconductor’s Power Solutions Business Group, said: “Solar power has become one of the fastest growing market segments and provides the most cost-competitive source for large-scale renewable energy unit installations. With On’s smart power technology, customers can achieve greater energy efficiency and power density to capture and save as much energy as possible from sunlight, advancing our shared vision for a more sustainable future.”

Photovoltaic inverters convert direct current (DC) generated by solar panels into alternating current (AC) that is compatible with the grid. During the conversion process, some of the energy is lost in the form of heat. On’s technology enables PV inverters – from utilities to residential applications – to be smaller, lighter and more efficient, minimizing energy loss and reducing overall system costs.