Wolfspeed inks multibillion-dollar agreement with Japanese manufacturer
Great news! A company that operates a facility right here in Central New York has inked an incredible deal with a leading Japanese semiconductor manufacturer.
Wolfspeed, which opened a $1.2 billion chip plant facility in Marcy last April, secured a $2 billion, decade-long supply agreement with Tokyo-based Renesas Electronics Corporation.
Wolfspeed's Central NY location manufactures the world’s first, fastest and only 200-millimeter Silicon Carbide chip.
While the company's technology supports the growing electric vehicle, 4G and 5G and industrial markets, it is also making incredible waves overseas.
According to a Wolfspeed press release, it entered a Silicon Carbide bare and epitaxial wafers supply agreement with Renasas. Simply put: what they will supply are critical semiconductor parts.
Why is this deal important?
This isn't just a major win for Wolfspeed, which is headquartered in North Carolina, New York also stands to gain benefits from this deal. This new investment could bolster Central New York by adding more job openings and attracting more top talent to the area.
Currently, Wolfspeed has roughly 60 job openings in Marcy right now.
This expectation of this deal is that Wolfspeed will provide quality silicon carbide wafers to Renasas, which in turn will commence producing silicon carbide power semiconductors by 2025.
Additionally, this deal comes as the world is grappling with a semiconductor shortage caused by the pandemic and supply chain shortages, which has contributed to the skyrocketing costs of phones, cars, computers and other electronics.
What are Silicon Carbide power semiconductors?
These compound semiconductors are critical components of power electronics devices like diesel engines, gas turbines and high-temperature conversion systems.
They also help with renewable energy and can power things like electric vehicles as well as their charging stations.
Silicon Carbide semiconductors produce more power, are more lightweight, and are more resilient than those made of just silicon. They are also more power efficient, in addition to being better at withstanding higher operating temperatures and voltages.
Said Gregg Lowe, President and CEO of Wolfspeed...
"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. For more than 35 years, Wolfspeed has focused on producing silicon carbide wafers and high-quality power devices, and this relationship marks an important step in our mission to save the world energy."
That is why more companies are embracing Silicon Carbide, because it is more efficient while also contributing to a lower system cost.
Last year, Wolfspeed and Lucid Motors reached a multiyear agreement for Wolfspeed to produce and supply Silicon Carbide devices.
The components would be used to help Lucid Motors produce its electric vehicle, the Lucid Air.
The Marcy location is part of the silicon carbide corridor from North Carolina to New York.