The company invested $500 million in Wolfspeed to secure an annual production capacity of up to $650 million for SiC devices.

Wolfspeed, Inc., the global leader in SiC technology, today announced a strategic partnership with BorgWarner, a leading global supplier of innovative and sustainable mobility solutions.

BorgWarner will invest $500 million in the financing transaction previously announced by Wolfspeed to secure access to SiC device production capacity. Under the multi-year agreement between Wolfspeed and BorgWarner, BorgWarner will have the right to purchase up to $650 million worth of devices annually, based on its increasing corporate demand.

Frédéric Lissalde, President and CEO of BorgWarner, stated: "As our electric vehicle business continues to accelerate, SiC-based power electronics are playing an increasingly important role for our customers. We believe this agreement will help ensure BorgWarner has a reliable supply of high-quality SiC devices. This is of significant importance to the company's inverter growth strategy. Building on BorgWarner's outstanding Viper power switch and inverter technology, we are pleased to collaborate with Wolfspeed, a leader in SiC technology, to unlock the potential of next-generation SiC products. We believe our partnership with Wolfspeed will drive innovation, accelerate the electrification transformation of the global automotive industry, and further advance BorgWarner's vision of 'a clean, energy-saving world.'"

BorgWarner's "Powering Forward" strategic goal aims to increase electric vehicle business Revenue from less than $350 million in 2021 to $4.5 billion in 2025. Based on new business awards and acquisitions announced as of the company's third-quarter financial report, BorgWarner believes that electric vehicle business Revenue is expected to reach approximately $4 billion in 2025.

Gregg Lowe, President and CEO of Wolfspeed, stated: "Today's announcement demonstrates that the strategic partnership between our two companies is dedicated to developing innovative solutions to better support the growing demand for SiC devices. BorgWarner has been a strong partner of Wolfspeed for many years. We are pleased to receive investment from BorgWarner to support the expansion of our production capacity, ensuring a stable product supply for BorgWarner and its customers. Combined with this agreement and our recently announced multi-billion dollar material production capacity expansion plan in North Carolina, it proves that the industry transition from silicon to SiC is proceeding in an orderly manner. "

At last month's investor day event, Wolfspeed introduced a multi-year, $6.5 billion Production capacity expansion plan, which includes installing more equipment at its advanced 200mm Mohawk Valley facility and constructing a 445-acre SiC materials plant in North Carolina. This will increase the company's existing materials Production capacity by more than 10 times. The first phase of construction is scheduled to be completed by the end of the company's fiscal year 2024.

About Wolfspeed, Inc.

Wolfspeed (NYSE: WOLF) leads the global adoption of silicon carbide (SiC) and gallium nitride (GaN) technologies. We provide industry-leading solutions for efficient energy savings and a sustainable future. The Wolfspeed product family includes SiC materials, power switching devices, and RF devices, targeting applications such as electric vehicles, fast charging, 5G, renewable energy and energy storage, as well as aerospace and defense. Through diligence, collaboration, and a passion for innovation, we unlock more possibilities. For more details, please visit www.wolfspeed.com.

About BorgWarner

For over 130 years, as a leading global product supplier, BorgWarner has upheld the spirit of innovation, continuously bringing innovative and sustainable mobility solutions to market. Today, we are accelerating the electrification transformation of the global automotive industry—let us join hands to build a cleaner, healthier, and safer future world!

Source: Wolfspeed