Infineon Technologies AG and Wolfspeed, Inc. have signed a new multi-year supply agreement for 200-millimeter silicon carbide wafers, announced on 15 October 2026. The deal transitions Infineon's existing supply relationship with Wolfspeed from 150-millimeter to 200-millimeter substrate technology.

Announced jointly from Munich, Germany, and Durham, North Carolina, the agreement builds on what the companies describe as a 20-year supply relationship between the two firms.

A deepened supply relationship moves to larger substrates

The transition to larger wafers is central to Infineon's manufacturing plans.

The company is currently converting its silicon carbide production from 150-millimeter to 200-millimeter manufacturing, and the expanded sourcing arrangement with Wolfspeed is intended to directly support that conversion.

Supply chain resilience as the stated goal

According to the announcement, the agreement is designed to strengthen supply chain resilience and enhance flexibility to support future growth.

Infineon operates a multi-source SiC substrate strategy to maintain supply chain flexibility and quality across its global manufacturing network, and the Wolfspeed deal broadens that supply base.

Alexander Gorski, Chief Operations Officer at Infineon, said that silicon carbide is at the heart of the energy transition and that securing a high-quality, resilient supply of 200-millimeter substrates is essential to delivering on the company's customers' long-term commitments.

He added that the agreement strengthens supply chain security for customers and provides additional flexibility and scalability to support Infineon's future growth.

The agreement also reinforces Infineon's position as the global leader in power semiconductors, according to the companies, and underpins the supply chain resilience behind Infineon's SiC growth strategy.

Demand drivers: vehicles, renewables, and AI datacenters

The companies point to growing demand for silicon carbide power semiconductors across electric vehicles, renewable energy systems, and AI datacenter power infrastructure.

SiC semiconductors have become a key enabling technology for electrification and energy efficiency applications that drive global decarbonization, spanning electric vehicle drivetrains, solar inverters, and industrial motor drives.

AI datacenters are described as beginning to emerge as a significant demand driver for SiC power semiconductors.

Power conversion efficiency across the datacenter power chain is a direct operating cost consideration for hyperscalers managing infrastructure at scale, and the switching efficiency and thermal performance of SiC make it a technically suitable option for specific power conversion stages where silicon reaches its practical limits.

Together with growing SiC adoption in vehicles and industrial applications, these trends support what the companies characterize as a strong long-term outlook for high-quality 200-millimeter SiC substrates.

The economics of 200-millimeter wafers

The move from 150-millimeter to 200-millimeter SiC wafers delivers large manufacturing economics compared to smaller-diameter production. A larger wafer diameter increases usable die area per wafer, reduces per-unit substrate cost, and improves overall manufacturing efficiency, according to the announcement.

A key element of Infineon's manufacturing network is its 200-millimeter SiC fab in Kulim, Malaysia, which the company describes as a world-class facility designed to be the world's largest and most competitive silicon carbide manufacturing facility.

The companies behind the deal

Infineon Technologies AG, traded on the Frankfurt Stock Exchange under IFX and on OTCQX as IFNNY, is a global semiconductor leader in power systems and IoT. The company states that it drives decarbonization and digitalization with its products and solutions and had around 57,000 employees worldwide at the end of September 2025.

Wolfspeed, Inc., listed on the New York Stock Exchange under the ticker WOLF, is the wafer supplier in the agreement and Infineon's long-standing substrate partner. The signing in Durham, North Carolina, reflects the company's role in the 200-millimeter silicon carbide substrate supply chain.

For Infineon, the agreement represents a further step in securing the substrate inputs needed for its high-volume 200-millimeter manufacturing ramp, while for Wolfspeed it extends a two-decade commercial relationship into the next wafer generation.

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