Cree and STMicroelectronics expand 150mm SiC wafer supply agreement

Cree and STMicroelectronics announced the expansion of their existing long-term supply agreement for silicon carbide wafers. The revised agreement requires Cree to supply ST with 150mm silicon carbide bare wafers and epitaxial wafers in the next few years, which is currently valued at over $800 million.

Jean-Marc Chery, president and CEO of ST, said that the latest extension of ST's long-term wafer supply agreement with Cree will continue to contribute to ST's global silicon carbide substrate supply flexibility. It will continue to contribute to our global supply, supplementing other external capacity that ST has secured and increasing internal capacity. The agreement will help meet the high-volume demand of ST's product manufacturing business in the coming years, and a large number of automotive and industrial customer projects will increase significantly.

As the automotive industry shifts from internal combustion engines to electric vehicles, SiC-based power solutions are rapidly gaining momentum across the automotive market, improving system efficiency, enabling longer range and faster charging for electric vehicles while reducing cost, weight and space. In the industrial market, SiC solutions enable smaller, lighter and more economical designs, convert energy more efficiently and unlock new clean energy applications. To better support these growing markets, equipment manufacturers are interested in securing high-quality SiC substrates to support their customers.