Renesas and Wolfspeed Sign 10 Year Silicon Carbide Wafer Supply Agreement

– Renesas and Wolfspeed have signed a 10-year silicon carbide wafer supply agreement, with Renesas providing a $2 billion deposit to secure the commitment.– The supply agreement will enable Renesas to scale up production of silicon carbide power semiconductors starting in 2025, supporting the industry’s transition from silicon to silicon carbide power devices.

Renesas, an advanced semiconductor solutions provider, and Wolfspeed, a global leader in silicon carbide technology, have entered into a wafer supply agreement. Renesas has deposited $2 billion to secure a decade-long supply of silicon carbide bare and epitaxial wafers from Wolfspeed. This will enable Renesas to scale production of silicon carbide power semiconductors starting in 2025.

The agreement was signed at Renesas’ headquarters in Tokyo by Hidetoshi Shibata, President and CEO of Renesas, and Gregg Lowe, President and CEO of Wolfspeed. Under the agreement, Wolfspeed will provide Renesas with 150mm silicon carbide bare and epitaxial wafers scaling in CY2025. The agreement also anticipates supplying Renesas with 200mm silicon carbide bare and epitaxial wafers once the recently announced John Palmour Manufacturing Center for Silicon Carbide is fully operational.

The demand for more efficient power semiconductors is increasing due to the growth of electric vehicles (EVs) and renewable energy. To meet this demand, Renesas is expanding its in-house manufacturing capacity. The company has recently restarted its Kofu Factory to produce IGBTs and established a silicon carbide production line at its Takasaki Factory.

Silicon carbide devices offer higher energy efficiency, greater power density, and lower system cost compared to conventional silicon power semiconductors. Their adoption is growing in multiple high-volume applications spanning EVs, renewable energy and storage, charging infrastructure, industrial power supplies, traction, and variable speed drives.

Hidetoshi Shibata of Renesas said, “The wafer supply agreement with Wolfspeed will provide Renesas with a stable, long-term supply base of high-quality silicon carbide wafers. This empowers Renesas to scale our power semiconductor offerings to better serve customers’ vast array of applications.”

Gregg Lowe of Wolfspeed added, “With the steepening demand for silicon carbide across the automotive, industrial and energy sectors, it’s critically important we have best-in-class power semiconductor customers like Renesas to help lead the global transition from silicon to silicon carbide.”

Renesas’ $2 billion deposit will support Wolfspeed’s capacity construction projects including the John Palmour Manufacturing Center for Silicon Carbide. The facility will primarily produce 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, leading to more chips per wafer and lower device costs.

This agreement between Renesas and Wolfspeed signifies a significant step in the transition from silicon to silicon carbide in the power semiconductor sector. It will impact the electric vehicle industry by providing more efficient power semiconductors and supporting the growth of EVs.

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