Japanese semiconductor company Renesas Electronics and US-based silicon carbide specialist Wolfspeed have recently inked a significant supply contract for silicon carbide wafers. The deal, which involves a substantial down payment of two billion dollars, solidifies Renesas’ access to a stable and long-term supply of high-quality silicon carbide wafers from Wolfspeed.
Commencing in 2025 and spanning a decade, the supply agreement ensures Renesas’ continuous provision of silicon carbide wafers, with specific details regarding purchase volume and total value kept confidential. However, Renesas has revealed that the agreement encompasses the procurement of 150-mm and 200-mm SiC wafers, a move aimed at supporting the widespread adoption of silicon carbide in the automotive, industrial, and energy markets.
The partnership between Renesas and Wolfspeed comes at a time when the demand for more efficient semiconductors in automotive and industrial applications is witnessing a substantial upswing. The growth of electric vehicles and renewable energy has spurred this increased need, prompting both companies to recognize the significance of silicon carbide’s role in meeting these emerging market demands.
One particular application driving Renesas’ requirement for silicon carbide chips is its collaboration with Nidec in the electric axle domain. By combining Nidec’s electric motors and components with Renesas’ semiconductor technology, the companies aim to develop an advanced “X-in-1” system that integrates both the electric motor and power electronics. Initially, the system will rely on silicon carbide semiconductors, with a future transition to gallium nitride planned to further reduce size and cost. Gallium nitride, like silicon carbide, offers greater energy efficiency compared to traditional silicon-based chips.
Turning back to the supply agreement with Wolfspeed, initial shipments from 2025 onward will encompass the aforementioned 150-mm silicon carbide wafers. As Wolfspeed’s John Palmour Manufacturing Center for silicon carbide (JP) in North Carolina reaches full operational capacity, it will also include the delivery of 200-mm wafers to Renesas.
Hidetoshi Shibata, President and CEO of Renesas, expressed his satisfaction with the agreement, stating that the collaboration with Wolfspeed would provide Renesas with a dependable and long-term supply of high-quality silicon carbide wafers. Shibata emphasized that this partnership positions Renesas as a key player in the thriving silicon carbide market, enabling them to expand their power semiconductor offerings and better cater to the diverse range of customer applications.
Gregg Lowe, President and CEO of Wolfspeed, stressed the critical importance of having leading power semiconductor customers like Renesas to facilitate the global transition from silicon to silicon carbide. Recognizing the growing demand for silicon carbide in the automotive, industrial, and energy sectors, Lowe acknowledged Renesas’ substantial two billion dollar contribution, which would support Wolfspeed’s ongoing capacity-building projects, including the completion of the JP plant in North Carolina.
Anticipated to increase Wolfspeed’s current silicon carbide production capacity in Durham, North Carolina by over tenfold, the multi-billion dollar JP facility will primarily focus on the production of 200-mm silicon carbide wafers, which are 1.7 times larger than the 150-mm counterparts. The larger wafers enable more chips per wafer, leading to reduced device costs and improved efficiency.
In addition to their ventures in North Carolina, Wolfspeed and ZF, a German automotive supplier, are collaborating on a silicon carbide semiconductor production plant in Saarland, Germany. This highly automated facility will mark Wolfspeed’s first production site in Europe, with a primary focus on 200-mm wafer production. Furthermore, the two companies are jointly spearheading the establishment of a research and development center for silicon carbide power electronics in the Nuremberg metropolitan region, further solidifying their commitment to advancing silicon carbide technology.
With this strategic supply agreement and their respective initiatives, Renesas Electronics and Wolfspeed are poised to contribute significantly to the ongoing transformation of the semiconductor industry, driving innovation in automotive, industrial, and energy sectors worldwide.
