Cree and STMicroelectronics Announce Multi-Year Silicon Carbide Wafer Supply Agreement
January 07 2019 - 4:30PM
Business Wire
Agreement to boost commercial expansion of SiC
in automotive and industrial applications
Cree, Inc. (Nasdaq: CREE) announces that it signed a multi-year
agreement to produce and supply its Wolfspeed® silicon carbide
(SiC) wafers to STMicroelectronics (NYSE: STM), a global
semiconductor leader serving customers across the spectrum of
electronics applications. The agreement governs the supply of a
quarter billion dollars of Cree’s advanced 150mm silicon carbide
bare and epitaxial wafers to STMicroelectronics during this period
of extraordinary growth and demand for silicon carbide power
devices.
“ST is the only semiconductor company with automotive-grade
silicon carbide in mass production today, and we want to press
forward to grow our SiC business both in terms of volume and
breadth of applications served, targeting leadership in a market
estimated at more than $3B in 2025,” said Jean-Marc Chery,
president and CEO of STMicroelectronics. “This agreement with Cree
will improve our flexibility, sustain our ambition and plans, and
contribute to boosting the pervasion of SiC in automotive and
industrial applications.”
“We remain focused on increasing the adoption of silicon
carbide-based solutions, and this agreement is a testament to our
mission,” said Gregg Lowe, CEO of Cree. “This is the third
multi-year agreement that we have signed this past year in support
of the industry’s transition from silicon to silicon carbide. As
the world leader in silicon carbide, Cree continues to expand
capacity to meet the growing market needs, particularly in
industrial and automotive applications. We are extremely pleased to
continue to support STMicroelectronics as we both invest to
accelerate this market.”
Wolfspeed, A Cree Company, is the global leader in the
manufacture of silicon carbide wafers and epitaxial wafers. The
supply agreement enables silicon carbide applications in the broad
automotive and industrial markets.
About STMicroelectronics
ST is a global semiconductor leader delivering intelligent and
energy-efficient products and solutions that power the electronics
at the heart of everyday life. ST’s products are found everywhere
today, and together with our customers, we are enabling smarter
driving and smarter factories, cities and homes, along with the
next generation of mobile and Internet of Things devices. By
getting more from technology to get more from life, ST stands for
life.augmented.
In 2017, the Company’s net revenues were $8.35 billion, serving
more than 100,000 customers worldwide. Further information can be
found at www.st.com.
About Cree, Inc.
Cree is an innovator of Wolfspeed® power and radio frequency
(RF) semiconductors, lighting class LEDs and lighting products.
Cree’s Wolfspeed product families include silicon carbide
materials, power-switching devices and RF devices targeted for
applications such as electric vehicles, fast charging, inverters,
power supplies, telecom and military and aerospace. Cree’s LED
product families include blue and green LED chips, high-brightness
LEDs and lighting-class power LEDs targeted for indoor and outdoor
lighting, video displays, transportation and specialty lighting
applications. Cree’s LED lighting systems and lamps serve indoor
and outdoor applications.
For additional product and Company information, please refer
to www.cree.com.
Forward Looking Statements:
This press release contains forward-looking statements involving
risks and uncertainties, both known and unknown, that may cause
actual results to differ materially from those indicated. Actual
results may differ materially due to a number of factors, including
the risk that we may be unable to manufacture these new products
with sufficiently low cost to offer them at competitive prices or
with acceptable margins; the risk we may encounter delays or other
difficulties in ramping up production of our capacity to supply
these products; customer acceptance of our products; the rapid
development of new technology and competing products that may
impair demand or render Cree’s products obsolete; and other factors
discussed in Cree’s filings with the Securities and Exchange
Commission, including its report on Form 10-K for the year ended
June 24, 2018, and subsequent filings.
Cree® and Wolfspeed® are registered trademarks of Cree, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20190107006013/en/
STMicroelectronicsINVESTOR RELATIONS:Céline BerthierGroup
VP, Investor RelationsTel :
+41.22.929.58.12celine.berthier@st.com
MEDIA RELATIONS:Alexis BretonDirector, PR & Media
OperationsTel: + 33 6 59 16 79 08alexis.breton@st.com
Cree, Inc.MEDIA RELATIONS:Claire SimmonsCorporate
MarketingTel: +1 919-407-7844csimmons@cree.com
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