Cree, Inc. and On Semiconductor announced the signing and implementation of a silicon carbide wafer supply agreement valued at more than $85 million. Under the agreement, Cree will manufacture and supply its advanced 150mm silicon carbide (SiC) bare wafers and epitaxial wafers to ON Semiconductor, which are used primarily in high growth markets such as electric vehicles and industrial applications.

“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," said Jeffrey Wincel, vice president and chief procurement officer at ON Semiconductor.

Gree's CEO Gregg Lowe said: "This is the fourth long-term agreement on silicon carbide materials that we announced in the past year and a half. We will continue to drive the adoption and availability of silicon carbide through our ongoing wafer supply agreement and our capacity expansion."