Infineon Technologies AG has signed a multi-year supply agreement with Wolfspeed for 200-millimeter silicon carbide (SiC) wafers.
The deal will transform the existing supply relationship with Wolfspeed from 150 mm to 200 mm substrate technology.
The move comes after Wolfspeed received a conditional 30-year, $1.5 billion loan from the U.S. Department of War to increase the production of SiC semiconductors. Wolfspeed opened the first fabrication facility to produce chips on 200 mm SiC wafers in 2022 and the investment will expand the facility. It should also help bolster Wolfspeed after it filed for bankruptcy in June 2025.
The Infineon agreement will give Infineon a supply of SiC wafers for chips in a range of applications like electric vehicles (EVs), renewable energy systems and AI data center power infrastructure.
“Silicon carbide is at the heart of the energy transition, and securing a high-quality, resilient supply of 200-millimeter substrates is essential to delivering on our customers’ long-term commitments,” said Alexander Gorski, COO at Infineon.
Gorski added the agreement will further give Infineon a strong supply base of 200 mm wafers and will give the company additional flexibility and scalability for SiC wafers.
Why Infineon needs more 200 mm SiC wafers
Infineon said AI data centers are emerging as a demand driver for SiC power semiconductors. This is due to the need for power conversion efficiency across the power chain in the data center.
The company added that SiC switching efficiency and thermal performance make the material suitable for specific power conversion stages. Infineon said that, coupled with increased demand for EVs and solar inverters, this supports the need for long-term supply of 200 mm SiC wafers.
Transitioning to 200 mm SiC wafers will increase the usable die area per wafer for SiC substrates. This will reduce per-unit substrate cost and improve overall manufacturing efficiency, Infineon said.
