Renesas Electronics and Wolfspeed announced a wafer supply agreement and US$2bn (USD) deposit by Renesas to secure a 10 year supply commitment of silicon carbide bare and epitaxial wafers from Wolfspeed.

The supply of high-quality silicon carbide wafers from Wolfspeed will pave the way for Renesas volume production of silicon carbide power semiconductors starting in 2025.

Renesas is moving quickly to address the growing demand for power semiconductors by expanding its in-house manufacturing capacity. The company recently announced the restart of its Kofu Factory to produce IGBTs, and establishment of a silicon carbide production line at its Takasaki Factory.

Compared to conventional silicon power semiconductors, silicon carbide devices enable higher energy efficiency, greater power density and a lower system cost.

The Renesas $2 billion deposit will help support Wolfspeed’s ongoing capacity construction projects including the claimed world’s largest silicon carbide materials factory in Chatham County, North Carolina.

The facility is targeted to generate a 10-fold increase from Wolfspeed’s current silicon carbide production capacity on its Durham, North Carolina campus. The facility will produce primarily 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, translating into more chips per wafer and ultimately, lower device costs.