Cree, Inc. and STMicroelectronics have extended their existing long-term silicon carbide (SiC) wafer supply agreement. The agreement also doubled in value the original supply agreement of Cree's advanced 150mm silicon carbide bare and epitaxial wafers to STMicroelectronics to more than US$500 million.

The increased wafer supply enables the semiconductor companies to address the rapidly growing demand for silicon carbide power devices globally, particularly in automotive and industrial 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 SiC-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 Chief Executive of STMicroelectronics.

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.

"Silicon carbide delivers performance enhancements that are critical to electric vehicles and a host of next-generation industrial solutions for solar, energy storage and UPS systems," said Gregg Lowe, Chief Executive Officer of Cree. "Cree remains committed to leading the semiconductor industry's transition from silicon to silicon carbide, and the extension of the agreement with ST ensures we are able to meet the accelerating, global demand for this solution across a diverse range of applications while accelerating the market."