Cree has signed a multi-year agreement with leading semiconductor solutions provider, ON Semiconductor, to produce and supply its Wolfspeed silicon carbide wafers. The agreement, valued at more than $85 million, provides for the supply of Cree’s advanced 150mm silicon carbide (SiC) bare and epitaxial wafers to ON Semiconductor for use in high-growth markets, such as electric vehicle and industrial applications.
According to ON, the partnership is essential in maintaining their world-class supply base. The agreement supports the company’s commitment to growing automotive and industrial applications and ensuring the availability of industry-leading silicon carbide that would help engineers solve their unique design challenges.
Cree CEO Gregg Lowe stated that the company is committed to leading the global semiconductor market’s transition from silicon to silicon carbide solutions. The recent partnership with ON Semi is the fourth major long-term agreement for silicon carbide materials that Cree has announced in the past year and a half. Lowe expects the company to continue driving silicon carbide adoption and availability through ongoing wafer supply agreements, such as this, and the recently announced major capacity expansion.