Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) and II-VI Incorporated (Nasdaq: IIVI) have signed a multi-year supply agreement for silicon carbide (SiC) wafers. The German-based semiconductor manufacturer is thus securing further access to this strategic semiconductor material to meet the strong increase in customer demand in this area. The agreement also supports Infineon's multi-sourcing strategy and increases its supply chain resilience. The first deliveries have already taken place.

SiC is a compound of silicon and carbon that enables particularly efficient and robust power semiconductors with a superior cost-benefit at the system level. The CoolSiC™ brand from Infineon is already the industry's largest portfolio for industrial power semiconductor applications. In addition to photovoltaic converters and industrial power supplies, the advantages of SiC are also particularly evident in the field of e-mobility. SiC power semiconductors are used in the main inverters for e-vehicle drive trains, in onboard battery charging units and in charging infrastructures. The material meets the highest quality standards for industrial and automotive applications. As strategic partners, II-VI and Infineon are also collaborating in the transition to 200mm SiC diameter wafers.

“SiC compound semiconductors set new standards in power density and efficiency. We are leveraging them to deliver on our strategy of decarbonization and digitalization,” said Angelique van der Burg, Chief Procurement Officer at Infineon. “Infineon is increasing investments in its SiC manufacturing capacity to meet the rapidly growing demand from our customers. We are pleased to add II-VI to our strategic supplier base and grow our business together.”

“Infineon, as a market leader in power semiconductors, is an important partner for us,” said Sohail Khan, Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies at II-VI. “Our highly specialized products are now helping Infineon provide innovative electronic components to key customers worldwide.”

Infineon expects its SiC semiconductor sales to grow by more than 60 percent on average per year, reaching approximately $1 billion by mid-decade. For the second half of the decade, Infineon expects on-going growth momentum, for which it invests in its recently announced additional manufacturing block in Kulim, Malaysia.

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