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Cree And ST Expand SiC Wafer Agreement

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Cree to double the value of 150mm SiC bare and epitaxial wafers it supplies to STMicroelectronics

Cree and STMicroelectronics are expanding and extending their existing multi-year, long-term SiC wafer supply agreement to more than $500 million. The extended agreement is a doubling in value of the original agreement for the supply of Cree's advanced 150mm SiC bare and epitaxial wafers to STMicroelectronics over the next several years. The increased wafer supply enables the semiconductor leaders to address the rapidly growing demand for SiC power devices globally, particularly in automotive and industrial applications.

“Expanding our long-term wafer supply agreement with Cree will increase the flexibility of our global SiC substrate supply. It will further contribute to securing the required volume of substrate we need to manufacture our SiC-based products as we ramp up production over the next years for the increasing number of programs won at automotive and industrial customers,” said Jean-Marc Chery, president and CEO of STMicroelectronics.

“SiC delivers performance enhancements that are critical to electric vehicles and a host of next-generation industrial solutions for solar, energy storage and UPS systems,” said Gregg Lowe, CEO of Cree. “Cree remains committed to leading the semiconductor industry's transition from silicon to SiC, 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.”

The adoption of SiC-based power solutions is rapidly growing across the automotive market as the industry seeks to accelerate its move from internal combustion engines to electric vehicles, enabling greater system efficiencies that result in electric cars with longer range and faster charging, while reducing cost, lowering weight and conserving space. In the industrial market, SiC modules enable smaller, lighter and more cost-effective inverters, converting energy more efficiently to unlock new clean energy applications.

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