On Semiconductor is to source silicon carbide (SiC) wafer from Cree's Wolfspeed subsidiary in a multi-year agreement worth over $85m. Cree also has SiC wafer supply deals with STMIcroelectronics and Infineon.
Cree will supply 150mm SiC bare and epitaxial wafers to ON Semiconductor for use in high-growth markets such as electric vehicle and industrial applications.
“ON Semiconductor continues to be a leader in driving the development of energy efficient innovations and devices,” said ON Semiconductor Vice President & Chief Procurement Officer Jeffrey Wincel. “Partnering with Cree is essential in maintaining a world-class supply base. This agreement supports our commitment to growing automotive and industrial applications and ensuring the availability of industry-leading silicon carbide that helps engineers solve their unique design challenges.”
“We are committed to leading the global semiconductor market’s transition from silicon to silicon carbide solutions and are pleased to support ON Semiconductor as we work to accelerate this market,” said Cree CEO Gregg Lowe. “This is the fourth major long-term agreement for silicon carbide materials that we have announced in the past year and a half. We will continue to drive silicon carbide adoption and availability through ongoing wafer supply agreements, such as this, and our recently announced major capacity expansion.”
ON Semiconductor is also starting to port its silicon power process to the former GLOBLFOUNDRIES/IBM plant in East Fishkill, New York. The process will be up and running in volume by next year says Lowe, after teh fab was aquired last month.