“We are very pleased that STMicroelectronics will continue to leverage Wolfspeed [brand] silicon carbide materials as part of their supply strategy for the next several years,” said Cree CEO Gregg Lowe. “Our long-term wafer supply agreements with device manufacturers now total more than $1.3bn and help support our efforts to drive the industry transition from silicon to silicon carbide. Our partnerships and significant investments in increased production capacity ensure we are well positioned to capitalize on what we believe to be is a multi-decade growth opportunity for silicon carbide-based applications.”

ST’s initial Cree deal was for $250m, to which it added another $250m before the latest tranche. The company also has a supply agreement with SiCystal, is trying to build up internal SiC wafer manufacturing capacity, and is keen to emphasise that it has a secure supply: “The adoption of silicon carbide-based power solutions is rapidly growing across the automotive market as the industry moves from internal combustion engines to electric vehicles. In the industrial market, silicon carbide solutions unlock new clean energy applications. To better support these growing markets, device manufacturers are interested in securing access to high-quality silicon carbide substrates to support their customers.”