What's Happening?
Wolfspeed, a developer of silicon carbide power semiconductor technology, has announced a multiyear supply agreement with BorgWarner. This agreement will provide Wolfspeed silicon carbide devices to support BorgWarner’s next-generation 800V silicon carbide-based
inverter platform. The collaboration aims to ensure a reliable, long-term supply of silicon carbide technology for BorgWarner’s electric vehicle (EV) and power conversion applications. This partnership reinforces Wolfspeed’s position as a stable supplier, leveraging its scaled U.S. manufacturing capabilities, which have fully transitioned to 200 mm wafers. Wolfspeed’s silicon carbide solutions are designed for high-heat and high-voltage environments, and BorgWarner will specifically utilize Wolfspeed’s 1200V silicon carbide technology for its 800V inverter platform.
Why It's Important?
This agreement is significant for the U.S. electric vehicle industry as it strengthens the supply chain for critical EV components. As global EV adoption continues to expand, with projections indicating EVs could account for approximately half of global car sales by 2035, reliable access to advanced silicon carbide technology is crucial. Silicon carbide is increasingly vital for delivering the efficiency, power density, and performance required by next-generation EV architectures. For BorgWarner, this partnership ensures consistent access to essential components, supporting its development of advanced EV inverter platforms. For Wolfspeed, it solidifies its market leadership in silicon carbide technology and highlights the importance of its U.S.-based manufacturing capabilities in meeting growing demand.
What's Next?
The multiyear supply agreement will facilitate the continued development and deployment of BorgWarner’s 800V silicon carbide-based inverter platform, contributing to the advancement of next-generation electric vehicles. Wolfspeed will continue to supply its silicon carbide devices, supporting the increasing demand for efficient and high-performance EV components. The agreement also underscores a broader trend of strategic partnerships between technology developers and automotive suppliers to secure critical materials and expertise in the rapidly evolving EV market. This collaboration is expected to contribute to the overall growth and technological sophistication of the electric vehicle sector in the coming years.
Beyond the Headlines
This partnership highlights the strategic importance of domestic manufacturing and supply chain resilience in critical technology sectors like electric vehicles. Wolfspeed's transition to 200 mm wafers in its U.S. manufacturing facilities positions it as a key player in ensuring a stable supply of advanced semiconductors, reducing reliance on international supply chains. The focus on silicon carbide technology also points to a broader industry shift towards materials that offer superior performance in demanding high-power and high-voltage applications, which is essential for the continued innovation and widespread adoption of EVs. This move could also influence other automotive suppliers to seek similar long-term agreements with domestic technology providers.
