DURHAM – Cree will be selling semiconductors from its Wolfspeed group to ON Semiconductor in a deal worth $85 million.
This is the fourth major deal for Wolfspeed, on which Cree CEO Greg Lowe is in large part banking the Durham-based firm’s future.
The companies announced the contract early Tuesday.
ON will use the chips for electric vehicle and industrial solutions, the companies said.
“We are committed to leading the global semiconductor market’s transition from silicon to silicon carbide solutions and are pleased to support ON Semiconductor as we work to accelerate this market,” Lowe said in a statement.
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“This is the fourth major long-term agreement for silicon carbide materials that we have announced in the past year and a half. We will continue to drive silicon carbide adoption and availability through ongoing wafer supply agreements, such as this, and our recently announced major capacity expansion.”
Cree recently announced plans to increase chip production with a $1 billion investment to be made in Durham.
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“ON Semiconductor continues to be a leader in driving the development of energy efficient innovations and devices,” said ON Semiconductor Vice President & Chief Procurement Officer Jeffrey Wincel. “Partnering with Cree is essential in maintaining a world-class supply base.
“This agreement supports our commitment to growing automotive and industrial applications and ensuring the availability of industry-leading silicon carbide that helps engineers solve their unique design challenges.”
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