- The agreement is now valued at more than $500 million
- As the industry moves from internal combustion engines to electric vehicles, adoption of silicon carbide-based power solutions is rapidly growing
Power and radio frequency (RF) semiconductors company Cree and STMicroelectronics have expanded and extended their existing multi-year, long-term silicon carbide wafer supply agreement to more than $500 million. The agreement is doubled in value from the original agreement for the supply of Cree’s advanced 150mm silicon carbide bare and epitaxial wafers to STMicroelectronics over the next few years.
Jean-Marc Chery, President and CEO of STMicroelectronics said, “Expanding our long-term wafer supply agreement with Cree will increase the flexibility of our global silicon carbide substrate supply. It will further contribute to securing the required volume of substrate we need to manufacture our silicon carbide-based products as we ramp up production over the next years for the increasing number of programs won at automotive and industrial customers.”
From internal combustion engines to electric vehicles
The adoption of silicon carbide-based power solutions is rapidly growing across the automotive market as the industry accelerates its move from internal combustion engines to electric vehicles, which allows for better system efficiencies that result in electric cars with longer range and faster charging. This reduces cost and lowers weight and conserves space. In the industrial market, silicon carbide modules produce smaller, lighter and cost-effective inverters which convert energy more efficiently for new clean energy applications.
Gregg Lowe, CEO of Cree said, “Silicon carbide delivers performance enhancements that are critical to electric vehicles and a host of next-generation industrial solutions for solar, energy storage and UPS systems. Cree remains committed to leading the semiconductor industry’s transition from silicon to silicon carbide, and the extension of the agreement with ST ensures we are able to meet the accelerating, global demand for this solution across a diverse range of applications while accelerating the market.”
