Renesas Electronics Corporation and Wolfspeed, Inc. have signed a 10-year wafer supply agreement for silicon carbide (SiC) technology. Renesas will deposit $2 billion to secure a long-term supply of SiC wafers from Wolfspeed. The agreement aims to support Renesas in scaling up production of SiC power semiconductors from 2025. The deal was finalized at a signing ceremony in Tokyo, attended by the CEOs of both companies.
The agreement entails Wolfspeed supplying Renesas with 150mm SiC wafers initially, with plans to transition to 200mm wafers once the John Palmour Manufacturing Center for Silicon Carbide in North Carolina is fully operational. The increasing demand for more efficient power semiconductors in automotive and industrial applications, driven by the growth of electric vehicles and renewable energy, has prompted Renesas to expand its manufacturing capacity. The company recently restarted its Kofu Factory and established a silicon carbide production line at its Takasaki Factory.
SiC power semiconductors offer higher energy efficiency, greater power density, and lower system costs compared to traditional silicon devices. The adoption of SiC technology is gaining traction in various high-volume applications, including EVs, renewable energy, charging infrastructure, and industrial power supplies.
Renesas’ CEO, Hidetoshi Shibata, expressed enthusiasm about the agreement, stating that it would provide a stable supply base of high-quality SiC wafers, enabling Renesas to meet the diverse needs of its customers and become a key player in the SiC market. Wolfspeed’s CEO, Gregg Lowe, emphasized the importance of collaboration with leading semiconductor customers like Renesas in driving the global transition from silicon to SiC.
To support Wolfspeed’s capacity expansion projects, Renesas has deposited $2 billion, contributing to the development of the world’s largest SiC materials factory. The facility will primarily produce 200mm wafers, allowing for increased chip yields and reduced device costs.
The 10-year wafer supply agreement between Renesas and Wolfspeed solidifies their commitment to advancing SiC technology and meeting the increasing demand for efficient power semiconductors. By combining their expertise, both companies aim to drive innovation and accelerate the global transition to sustainable power electronics.
