What's Happening?
Wolfspeed, Inc., a leading semiconductor company specializing in silicon carbide (SiC) technologies, has announced a multiyear supply agreement with BorgWarner. This agreement will provide BorgWarner with Wolfspeed's silicon carbide devices to support
its next-generation 800V silicon carbide-based inverter platforms. The collaboration aims to ensure a consistent and uninterrupted supply of high-performance SiC technology for electric vehicle (EV) and power conversion applications. Wolfspeed's Gen 5 silicon carbide technology, specifically its 1200V SiC technology, will be utilized by BorgWarner. This partnership reinforces Wolfspeed's role as a long-term supplier and aligns with its scaled U.S. manufacturing capabilities, which have fully transitioned to 200 mm wafers. The agreement comes amidst a significant expansion in global EV adoption, with electric vehicles accounting for 25% of new cars sold globally in 2025, and projections indicating they could represent approximately half of global car sales by 2035.
Why It's Important?
This supply agreement is crucial for the U.S. automotive industry and the broader electric vehicle market. By securing a long-term supply of silicon carbide devices from Wolfspeed, BorgWarner can ensure the continued development and production of its advanced 800V inverter platforms, which are vital components for next-generation EVs. Silicon carbide technology is increasingly critical for achieving the efficiency, power density, and performance required by modern electric vehicle architectures. This partnership highlights the growing reliance on advanced semiconductor materials for automotive innovation. For Wolfspeed, the agreement solidifies its position as a key supplier in the rapidly expanding EV sector, demonstrating the demand for its U.S.-manufactured silicon carbide products. The stability of this supply chain is essential for automakers as they scale up EV production and bring more sophisticated electric vehicle platforms to market, ultimately impacting consumer adoption and the overall transition to electric transportation.
What's Next?
The multiyear supply agreement between Wolfspeed and BorgWarner is expected to facilitate the accelerated development and deployment of BorgWarner's 800V silicon carbide inverter platforms. This will likely lead to more efficient and higher-performing electric vehicles entering the market in the coming years. Wolfspeed will continue to leverage its 200 mm wafer manufacturing capabilities to meet the increasing demand for silicon carbide devices from BorgWarner and other automotive partners. The success of this partnership could encourage further collaborations between semiconductor manufacturers and automotive suppliers, driving innovation in EV technology. As global EV adoption continues to grow, the demand for advanced materials like silicon carbide will intensify, potentially leading to increased investment in manufacturing capacity and research and development within the U.S. semiconductor industry.
Beyond the Headlines
This agreement underscores a significant trend in the automotive industry: the shift towards silicon carbide as a foundational technology for electric vehicles. Beyond its immediate impact on BorgWarner's product development, this partnership highlights the strategic importance of domestic semiconductor manufacturing capabilities, particularly for critical components like silicon carbide. The U.S. government's focus on strengthening domestic supply chains for essential technologies, as seen in initiatives like the CHIPS Act, gains further relevance in such agreements. The long-term implications include not only advancements in EV performance but also potential geopolitical advantages for the U.S. in the global automotive and technology sectors. Furthermore, the emphasis on efficiency and performance in EVs, driven by SiC technology, contributes to broader environmental goals by reducing energy consumption and emissions, aligning with global sustainability efforts.
