Cree announced that it has extended its existing agreement with STMicroelectronics for silicon carbide supply with double value of the original agreement.

In January 2019, Cree and STMicroelectronics revealed their long term partnership that Cree will provide its Wolfspeed silicon carbide wafers valued US$250 million to STMicroelectronics. The two companies now reported expansion and extension of the agreement to more than US$500 million. The increased wafer supply enables the semiconductor leaders to address the rapidly growing demand for silicon carbide power devices globally, particularly in automotive and industrial applications.
The adoption of silicon carbide-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, silicon carbide modules enable smaller, lighter and more cost-effective inverters, converting energy more efficiently to unlock new clean energy applications.
“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,” said Jean-Marc Chery, President and CEO of STMicroelectronics.