DURHAM – Cree CEO Gregg Lowe has said he sees a multi-billion-dollar pipeline of deals coming for Cree’s Wolfspeed semiconductor and power products. A company with a storng North Carolina as well as international footprint is the latest to sign on for Wolfspeed tech.
Cree (Nasdaq; CREE) and ABB, which has operations in the Triangle and manufacturing plants in the state, announced a deal Monday in which ABB will incorporate Wolfspeed semiconductors and components needed for electrical vehicle manufacturing and other industrial uses.
Financial terms were not disclosed.
However, the deal with Switzerland-based ABB is just the latest in a series for Cree’s Wolfspeed around which Lowe over the past two years has bet the future of the Durham-based firm. Earlier this month, Cree announced an agreement with Germany-based ZF related to EVs.
And in September Cree announced a deal with Delphi, also focused on EVs.
“Cree’s products will be included as part of ABB’s power semiconductor product portfolio, across power grids, train and traction, industrial and e-mobility sectors,” the companies said.
“Specifically, Cree’s industry-leading silicon carbide devices will be assembled into ABB power modules.”
The deals are part of the reason for Lowe’s decision to expand production R&D in Durham and build a manufacturing plant in New York that originally had been intended for Durham.
About this deal, Lowe noted:
Cree, Delphi to produce electric vehicle equipment for ‘premium global automaker’
“Cree is committed to leading the global semiconductor market’s transition to more energy efficient, higher performing silicon carbide-based solutions. ABB has a longstanding heritage as the world market leader in industrial power electrification solutions, so expanding our work with them will help increase the adoption of transformative and eco-friendly alternatives in the power and automotive sectors.
“Together, this partnership delivers Wolfspeed silicon carbide into new markets, such as power grids and high-speed trains for the continued advancement of the power, traction, industrial and EV markets.”
Cree notes that its Wolfspeed silicon carbide semiconductors are more effieient than traditional silicon-based semiconductors. “For the EV market, this means longer driving distances and faster charging times using the same size battery,” Cree says.
“The partnership with Cree supports ABB’s strategy in developing energy-efficient silicon carbide semiconductors in the automotive and industrial sectors,” said Rainer Käsmaier, Managing Director of Semiconductors at ABB’s Power Grids business, in a statement.
“It emphasizes ABB’s commitment to continuous technological innovation to shape the future of a smarter and greener society.”
Compared to a silicon-based semiconductor, a silicon carbide semiconductor delivers a significant reduction in switching losses and permits far higher switching frequencies. This means that energy can be converted with more than 99 percent efficiency, significantly decreasing energy loss and playing a major role in reducing carbon dioxide emissions.
This advanced technology enables future utilization of silicon carbide modules in traction inverters for trains, HVDC for power transmission and distribution, solar and wind inverters, energy storage, and transformers. For the EV market, this means longer driving distances and faster charging times using the same size battery.
