BorgWarner, which includes Delphi Technologies, will invest $500 million in Wolfspeed and secure up to $650 million annual production capacity for silicon carbide devices.
BorgWarner, which incorporates Delphi Technologies, has signed a major strategic partnership. BorgWarner announced that Wolfspeed, the world leader in silicon carbide technology, has invested $500 million in Wolfspeed's financing transaction for the silicon carbide device capacity corridor.
According to the multi-year agreement with Wolfspeed, BorgWarner will have the right to purchase devices for up to $650 million per year in line with its requirements.
“We believe it will accelerate the transition to electric vehicles”
BorgWarner President and CEO Frédéric Lissalde said that as electric vehicle activities continue to accelerate, silicon carbide-based power electronics are gaining more and more importance for their customers.
“We believe this agreement will help BorgWarner to be able to reliably supply quality silicon carbide devices that are critical to our growth plans for the inverter business. We are excited to have the opportunity to work with Wolfspeed, the leader in silicon carbide, on the potential development of a new generation of silicon carbide products, based on BorgWarner's high-end Viper power switches and inverter technology. We believe our relationship with Wolfspeed will drive innovation, accelerate the transition to electric vehicles globally, and advance BorgWarner's vision for a clean energy efficient world.”
As part of its Charge Forward strategy, BorgWarner aims to increase its electric vehicle revenue from close to $2021 million in 350 to $2025 billion in 4,5. BorgWarner aims to generate approximately $2025 billion in electric vehicle revenue by 4, with new deals and acquisitions announced in the company's third-quarter results.
“The industry transition will continue from silicon to silicon carbide”
The statement showcases the creative solutions the two strategic partners are pursuing to better support the growing demand for silicon carbide-based devices.
Stating that the partnership of BorgWarner and Wolfspeed dates back to many years, Wolfspeed President and CEO Gregg Lowe said, “To support our capacity-building efforts, we are pleased to secure the investment that will materialize and to ensure a stable product supply for customers. This agreement, coupled with our multi-billion-dollar materials expansion goal in North Carolina, also confirms that the industry transition from silicon to silicon carbide continues.” said.
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