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Wolfspeed, Inc. announced a $1.25 billion secured note financing from an investment group led by Apollo, with an accordion feature for up to an additional $750 million.
The financing supports the company’s previously announced U.S. expansion efforts and is a significant step toward achieving the company’s $6.5 billion global capacity expansion plan. Execution of Wolfspeed’s U.S. growth plan will accelerate adoption of silicon carbide across a wide array of end markets and support meaningful job creation in US semiconductor manufacturing.
The 9.875% notes will mature in 2030 and are optionally prepayable by the company based on the terms of the indenture governing the notes. The investment was led by funds managed by Apollo’s ~$450 billion Credit business.
“The group’s commitment to Wolfspeed further validates the importance of silicon carbide to the global energy transition,” said Gregg Lowe, president and chief executive officer of Wolfspeed. “This important step in our financing provides significant capital to scale up near-term operations at our Mohawk Valley Fab and construction of our Siler City materials facility to help us capture the growing silicon carbide market opportunity. The financing positions Wolfspeed to continue to lead the growth of the industry and focus on the execution of our vertically integrated strategy to meet growing demand.”
“Our agreement with Apollo and its capital partners achieves our near-term funding targets while prioritizing our shareholders with a new, non-dilutive source of financing,” said Neill Reynolds, chief financial officer of Wolfspeed. “Apollo and its capital partners’ investment follows an extensive review of our business and demonstrates their conviction in our team, operating plan and trajectory.”
“Apollo is pleased to provide a dynamic and flexible credit solution to Wolfspeed as it significantly expands its silicon carbide manufacturing capacity. The company’s growth plan is designed to deliver critical silicon carbide products for a range of automotive and industrial uses, and support sustainability goals with market-leading technology,” said Joseph Jackson, Partner, Apollo Credit. “With the help of our capital partners, we have crafted a facility that can provide up to $2 billion to ramp the company’s expansion plans.”
Wells Fargo & Company (NYSE: WFC) and Morgan Stanley & Co. LLC served as financial advisors to Wolfspeed and Latham & Watkins LLP and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. served as legal counsel to Wolfspeed. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to the Apollo funds and the noteholder group. Apollo Capital Solutions provided capital markets and structuring advisory services on the transaction.
Original – Wolfspeed
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Airbus, a global pioneer in the aerospace industry, and STMicroelectronics, have signed an agreement to cooperate on power electronics Research & Development to support more efficient and lighter power electronics, essential for future hybrid-powered aircraft and full-electric urban air vehicles.
The collaboration builds on evaluations already conducted by both companies to explore the benefits of wide bandgap semiconductor materials for aircraft electrification. Wide bandgap semiconductors like Silicon Carbide (SiC) and Gallium Nitride (GaN) have superior electrical properties compared with traditional semiconductors like silicon. They enable the development of smaller, lighter and more efficient high-performance electronic devices and systems, particularly in applications requiring high power, high frequency, or high-temperature operations.
The cooperation will focus on developing SiC and GaN devices, packages, and modules adapted for Airbus’ aerospace applications. The companies will assess these components by conducting advanced research and tests on demonstrators, such as e-motor control units, high and low voltage power converters, and wireless power transfer systems.
Original – STMicroelectronics
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Vitesco Technologies, a leading international manufacturer of modern drive technologies and electrification solutions, has secured strategically important capacities in energy-efficient silicon carbide power semiconductors through a long-term supply partnership with ROHM – worth over one billion US dollars until 2030. The development partnership with the manufacturer ROHM, which began in 2020, created the basis for the supply partnership now signed in Regensburg. Vitesco Technologies’ advanced inverters with integrated ROHM SiC chips will be adopted by two customers, to be applied inside electric vehicle powertrains. Vitesco Technologies will start supplying a first series project as early as 2024. The company is thus even ahead of the originally targeted timeline.
SiC devices enable the design of particularly efficient power electronics, such as those needed for electric car inverters. SiC chips are a key technology, particularly for high voltages and for vehicles with demanding range targets and optimum overall efficiency. During the existing development partnership with ROHM the relevant SiC chips were further optimized for use in automotive inverters starting in 2024.
Silicon carbide belongs to the so-called wide bandgap semiconductors, whose wide bandgap (simplified: the energy gap between the non-conductive state and the conductive state of the electrons in the material) enables lower electrical resistance, fast and low loss switching chips for power electronics. At the same time, SiC chips are more thermally resistant, so that the power density of electronics can be increased.
Thanks to these features, SiC electronics have reduced conversion losses compared to conventional silicon (Si). Especially at high voltage levels such as 800 V, SiC inverters are more efficient than Si models. Since 800 V is the prerequisite for fast and thus convenient high-voltage charging, SiC devices are at the beginning of a worldwide boom. Reduced conversion losses in the inverter are also significant for the overall efficiency of electric driving and thus for range. Competition for sufficient capacities in components made of this high-tech material is correspondingly fierce.
Original – Vitesco Technologies
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LATEST NEWS / SiC / TOP STORIES / WBGSK Powertech Adopts Silvaco’s Victory TCAD Solution for the Development of NextGen SiC Power Devices
June 15, 2023
2 Min ReadSilvaco Group, Inc. (“Silvaco”), a provider of TCAD, EDA software, and design IP, announced that SK Powertech has adopted its Victory TCAD (Technology Computer-Aided Design) solution for power devices to accelerate research and development of its next generation SiC (Silicon Carbide) power devices. The Victory TCAD solution enables SK Powertech to achieve significant improvements in its power management technology.
SK Powertech is a leading provider of compact SiC power devices for high voltage/high temperature applications serving growing end markets such as electric vehicles, railways, and alternative energy. SK Powertech’s products are optimal for smaller, light-weight packages with high voltage/high temperature requirements.
“To achieve significant advances in SiC power semiconductor performance, we sought a partner who could assist us in implementing our next-generation SiC power technology. Through our collaboration with Silvaco’s technical team and the utilization of their Victory TCAD Solution for power devices, we successfully transformed conceptual ideas into actual working devices,” said Dr. Changheon Yang, director of R&D center at SK Powertech. “The combination of the advanced feature set in Victory TCAD Solution and Silvaco’s depth of technical capabilities enables us to deliver the best products and to meet our end market requirements.”
“The expanding markets for power management in solar, automotive, industrial applications and embedded computers are driving the growing adoption of SiC power devices,” said Dr. Babak Taheri, CEO of Silvaco Group. “The success of SK Powertech demonstrates the benefits of using Silvaco Victory TCAD solution for power devices. This solution enables the development of cutting-edge semiconductor products that drive innovation and advancement in the field.”
“Our Victory TCAD solution is recognized in the semiconductor industry for its simulation and analyses capabilities and is widely adopted in the SiC power devices market,” said Eric Guichard, Senior Vice President, and General Manager of the TCAD business unit of Silvaco. “With Silvaco’s TCAD solution, SK Powertech is well-positioned to make significant advancements in SiC power device technology and to contribute to the adoption of its SiC devices in various industries.”
Original – Silvaco
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Infineon presents its new generation of 1200 V CoolSiC™ MOSFETs in TO263-7 for automotive applications. The automotive-graded silicon carbide (SiC) MOSFET generation offers high power density and efficiency, enables bi-directional charging and significantly reduces system cost in on-board charging (OBC) and DC-DC applications.
The 1200 V CoolSiC family member offers best-in-class switching performance through 25 percent lower switching losses compared to the first generation. This improvement in switching behavior enables high-frequency operation, leading to smaller system sizes and increased power density. With a Gate-source threshold voltage (V GS(th)) greater than 4 V and a very low Crss/ Ciss ratio, reliable turn-off at V GS = 0 V is achieved without the risk of parasitic turn-ons. This allows for unipolar driving, resulting in reduced system cost and complexity. In addition, the new generation features a low on resistance (R DS(on)), reducing conductive losses over the whole temperature range of -55°C to 175°C.
The advanced diffusion soldering chip mount technology (.XT technology) significantly improves the package’s thermal capabilities, lowering the SiC MOSFET junction temperature by 25 percent compared to the first generation.
Moreover, the MOSFET has a creepage distance of 5.89 mm, meeting 800 V system requirements and reducing coating effort. Infineon is offering a range of R DS(on) options to cater to diverse application demands, including the only 9 mΩ type in the TO263-7 package currently on the market.
Original – Infineon Technologies
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Mitsubishi Electric Corporation announced that it will begin shipping samples of its new NX-type full-SiC (silicon carbide) power semiconductor module for industrial equipment on June 14. The module, which reduces internal inductance and incorporates a second-generation SiC chip, is expected to contribute to the realization of more efficient, smaller and lighter-weight industrial equipment.
Power semiconductors are increasingly being utilized to convert electric power extra efficiently and thereby help to lower the carbon footprint of global society. Expectations are particularly high for SiC power semiconductors because of their capability to significantly reduce power loss. The demand is expanding for high-power, high-efficiency power semiconductors capable of improving the power-conversion efficiency of components such as inverters used in industrial equipment.
Mitsubishi Electric began releasing power semiconductor modules equipped with SiC chips in 2010. The new module, which features a low-loss SiC chip and optimized electrode structure, reduces internal inductance by 47% compared to its existing predecessor, enabling reduced power loss. Development of this SiC product have been partially supported by Japan’s New Energy and Industrial Technology Development Organization (NEDO).
Original – Mitsubishi Electric
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Toshiba Electronic Devices & Storage Corporation (“Toshiba”) has expanded its line-up of N-channel power MOSFETs fabricated with the latest-generation process, with a 600V super junction structure suitable for data centers, switching power supplies, and power conditioners for photovoltaic generators. The new product, “TK055U60Z1,” is the first 600V product in the DTMOSVI series.
By optimizing the gate design and process, 600V DTMOSVI series products reduce drain-source On-resistance per unit area by approximately 13%, and drain-source On-resistance × gate-drain charge, the figure of merit for MOSFET performance, by approximately 52%, compared to Toshiba’s current generation DTMOSIV-H series products with the same drain-source voltage rating. This ensures the series achieve both low conduction loss and low switching loss, and helps to improve efficiency of the switching power supplies.
The new product is housed in a TOLL package that allows Kelvin connection of its signal source terminal for the gate drive. The influence of inductance in the source wire in the package can be reduced to accentuate the high-speed switching performance of the MOSFET, which suppresses oscillation during switching.
Toshiba will continue to expand its 600V DTMOSVI series line-up, and its already released 650V DTMOSVI series products, and support energy conservation by reducing power loss in switching power supplies.
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STMicroelectronics and Sanan Optoelectronics announced that they have signed an agreement to create a new 200mm silicon carbide device manufacturing JV in Chongqing, China. The new SiC fab is targeting to start production in Q4 2025 and full buildout is anticipated in 2028, supporting the rising demand in China for car electrification as well as for industrial power and energy applications. In parallel, Sanan Optoelectronics will build and operate separately a new 200mm SiC substrate manufacturing facility to fulfill the JV’s needs, using its own SiC substrate process.
The JV will make SiC devices exclusively for STMicroelectronics, using ST proprietary SiC manufacturing process technology, and serve as a dedicated foundry to ST to support the demand of its Chinese customers.
The total amount for the full buildout of the JV is expected to be about $3.2 billion, including capital expenditures of about $2.4 billion over the next 5 years, which will be financed by contributions from STMicroelectronics and Sanan Optoelectronics, local government support, and loans to the JV.
“China is moving fast towards electrification in Automotive and Industrial and this is a market where ST is already well-established with many engaged customer programs. Creating a dedicated foundry with a key local partner is the most efficient way to serve the rising demand of our Chinese customers. The combination of Sanan Optoelectronics’ future 200mm substrate manufacturing facility with the front-end JV and ST’s existing back-end facility in Shenzhen, China will enable ST to offer our Chinese customers a fully vertically integrated SiC value chain,” said Jean-Marc Chery, President and CEO of STMicroelectronics. “It is an important step to further scale up our global SiC manufacturing operations, coming in addition to our continuing significant investments in Italy and Singapore. This JV is expected to be one of the enablers of the opportunity we see to reach $5B+ SiC revenues by 2030. This initiative is consistent with ST 2025-27 $20B+ revenue ambition and the associated financial model, previously communicated to the financial markets.”
“The establishment of this joint venture will be a major driving force for the wide adoption of SiC devices on the Chinese market,” said Simon Lin, CEO of Sanan Optoelectronics. “Being an international, well-known, high quality SiC foundry service company, Sanan will also supply its SiC substrate to this new joint venture, by building a dedicated new SiC substrate factory. This is an important step for Sanan Optoelectronics’ ambitions as a SiC foundry. With this new Joint Venture and the new SiC substrate capacity expansion, we are confident that we will continue to take the lead in the SiC foundry market.” The completion of the project is subject to regulatory approvals.
Original – STMicroelectronics
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Nidec Corporation and Renesas Electronics Corporation have agreed to join forces on the development of semiconductor solutions for a next-generation E-Axle (X-in-1 system) that integrates an EV drive motor and power electronics for electric vehicles (EVs).
Today’s EVs are increasingly adopting the 3-in-1 unit called E-Axle, which integrates a motor, inverter, and gearbox (reduction gear). To realize high-performance and efficiency as well as smaller size, light weight and lower cost, and to accelerate vehicle development, EVs are also integrating power electronics controls such as DC-DC converters and on-board chargers (OBCs). EV manufacturers in advanced markets such as China have developed an X-in-1 platform that integrates multiple functions, accelerating the adoption in many vehicle models.
As X-in-1 integrates multiple functions and increases in complexity, maintaining a high-level of quality in vehicles becomes challenging. Thus, developing preventive safety technologies such as diagnostic functions and failure prediction is crucial for ensuring safety and security in vehicles. To address this challenge, the two companies agreed to combine Nidec’s motor technology and Renesas’ semiconductor technology to jointly develop a highly reliable and high-performance proof of concept (PoC) for the X-in-1 system. The PoC is designed to support the industry’s highest performance and efficiency as well as smaller size, light weight and lower cost for the X-in-1 system.
The companies plan to launch the first PoC by the end of 2023, which will feature a 6-in-1 system with a DC-DC converter, OBC, and power distribution unit (PDU) as well as a motor, inverter, and gearbox. As a second phase in 2024, Nidec and Renesas plan to develop a highly integrated X-in-1 PoC that incorporates a battery management system (BMS) along with other components. The first PoC will include power devices based on SiC (silicon carbide), and the second PoC will replace the DC-DC and OBC power devices with GaN (gallium nitride), offering excellent performance in high-frequency operation, to further reduce size and cost.
Building on the PoC developed through this collaboration, Nidec plans to rapidly productize E-Axle systems to add to its portfolio and ramp up to mass production to lead the E-Axle market. Renesas plans to develop and deliver turnkey solutions for increasingly complex X-in-1 systems by expanding the jointly developed PoC for E-Axle reference designs.
Original – Renesas Electronics
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GlobalFoundries Inc. and STMicroelectronics announced the conclusion of the agreement to create a new, jointly-operated, high-volume semiconductor manufacturing facility in Crolles (France), which was announced on 11 July 2022.
“I would like to thank Minister Le Maire, the French Minister of the Economy and Finance, and his team for their support and the dedication for the last 12+ months that have made celebrating today’s milestone possible,” said Dr. Thomas Caulfield, president and CEO of GlobalFoundries. “In partnership with ST in Crolles, we are further expanding GF’s presence within Europe’s dynamic technology ecosystem while benefiting from economies of scale to deliver additional capacity in a highly capital efficient manner. Together we will deliver GF’s market leading FDX technology and ST’s comprehensive technology roadmap, in alignment with customer demand which is expected to remain high for Automotive, IoT, and Mobile applications over the next decades.”
“Today marks an important milestone for ST, for GF as well as for Europe. This could not have been achieved without the support of the French government as well as of the European Commission,” said Jean-Marc Chery, President and CEO of STMicroelectronics. “We will further reinforce the European and French FD-SOI ecosystem, building more capacity for our European and global customers in complex, advanced technologies for key end-markets including automotive, industrial, IoT and communication infrastructure, as they transition to digitalization and decarbonization. This new manufacturing facility will support our $20 billion+ revenue ambition.”
The program represents an overall projected cost of 7.5 billion euro for CAPEX, maintenance and ancillary costs. The new facility will benefit from significant financial support from the State of France (administered by Bpifrance). The aid measure, in line with the objectives set out in the European Chips Act and part of the “France 2030” plan, recently received approval from the European Commission.
Original – GlobalFoundries
