Sungrow has selected ON Semiconductor's EliteSiC silicon-carbide power modules for its solar inverter portfolio, a design win Simply Wall Street highlighted this month as evidence the chipmaker still trades below intrinsic value.

The endorsement carries weight beyond the headline. Sungrow, headquartered in Hefei, China, sits among the top three global solar inverter manufacturers and ships into residential, commercial, and utility-scale installations across more than 150 countries. When an inverter vendor of that scale picks a SiC partner, it tells the rest of the solar industry which discrete and module families have cleared multi-year reliability, thermal, and cost gates.

What's actually inside EliteSiC?

EliteSiC is ON Semi's branded family of silicon-carbide MOSFETs, bare-die devices, and integrated power modules. The line competes in a power-electronics market now crowded with Wolfspeed's MOSFET and module families, STMicroelectronics' SiC portfolio, and Infineon's CoolSiC line. SiC wins over legacy silicon IGBTs on switching losses and thermal behavior — two parameters that translate directly into higher inverter efficiency, smaller magnetics, and lower cooling budgets. For solar developers chasing every basis point of levelized cost of energy, that delta matters at the project-financing stage.

Why does Simply Wall Street see undervaluation?

The Simply Wall Street note carries the headline "Is ON Semiconductor (ON) Undervalued As Sungrow Picks Its EliteSiC Modules?" and leans on a discounted-cash-flow framework. Its analysts argue that design wins like Sungrow's expand a SiC revenue pipeline the broader market hasn't fully captured into ON Semi's near-term multiples. The intrinsic-value model factors in continued SiC fab investment at ON Semi's Hudson, New Hampshire site and at additional 200mm capacity the company has publicly committed to, plus volume running through third-party foundries.

How does Sungrow fit ON Semi's broader SiC push?

The Sungrow program lands alongside ON Semi's heavier SiC bets in EV traction inverters, on-board chargers, and DC fast-charging infrastructure. Solar is the smaller of those three buckets by revenue, but it carries lower qualification friction and a shorter design-in cycle — a useful offset as some automotive customer programs slip on ramp timing. It also gives the chipmaker a non-automotive reference design at a moment when EV SiC demand has cooled at several Tier 1 suppliers.

What's the competitive read?

In SiC power modules for solar, Wolfspeed and STMicroelectronics spent the last 18 months chasing similar inverter design wins. A Sungrow socket gives ON Semi a clean reference in a category where reference designs cascade: one platform pick often pulls adjacent product families with it, including auxiliary power supplies and battery-storage converters that ship in the same cabinet.

Pricing pressure from Chinese SiC entrants will be the swing factor. Domestic suppliers push 6-inch wafers at aggressive price points, and Sungrow's procurement team operates with one foot in that supplier base.

Bottom line

If the Sungrow deployment ramps on plan, expect ON Semi to cite it in upcoming earnings calls as proof that its SiC diversification past automotive is converting. Watch for follow-on design wins in storage and EV on-board charging as the next signal that the Sungrow endorsement is broadening into a broader platform play.