Navitas Semiconductor, a US-based chip designer with a significant UK customer base, has announced it is licensing its silicon carbide (SiC) technology to Magnachip Semiconductor Corporation. The deal, confirmed by both companies, allows Magnachip to manufacture and sell SiC power devices using Navitas' proprietary designs, targeting high-growth markets such as electric vehicles (EVs), data centres, and renewable energy infrastructure.
Silicon carbide chips are more efficient than traditional silicon-based semiconductors, handling higher voltages and temperatures while reducing energy loss. This makes them critical for next-generation EV powertrains and grid-scale battery storage. Under the terms of the agreement, Navitas will receive upfront licensing fees and ongoing royalties from Magnachip's sales of the licensed products, though specific financial details have not been disclosed.
For UK investors, the deal highlights the increasing global race to secure semiconductor supply chains. While Navitas is not listed in London, its technology underpins products used by British automotive manufacturers such as Jaguar Land Rover and Nissan UK. The FTSE 100 closed at 8,215.40 on Wednesday, down 0.3 per cent, with the technology sector under slight pressure amid broader market caution. However, analysts at Peel Hunt noted that 'demand for SiC components remains robust, and licensing deals such as this help alleviate capacity bottlenecks that have constrained the industry.'
The partnership also reflects a broader trend of vertical integration in the semiconductor industry. Magnachip, based in South Korea, gains access to Navitas' advanced GaNFast and SiC technologies without the cost of developing its own IP from scratch. For UK pension holders with exposure to global tech funds, the deal underscores the strategic value of companies specialising in energy-efficient power management, a sector that is expected to grow as governments tighten emissions regulations.
Industry observers point out that the UK's own semiconductor strategy, announced earlier this year, aims to boost domestic chip design and manufacturing. While this licensing agreement does not directly involve British firms, it could lead to increased supply stability for UK-based EV and renewable energy companies that rely on imported SiC components. No timeline for volume production under the license has been given, with both companies citing ongoing integration work.