Infineon Technologies has signed a multi-year agreement with Wolfspeed to secure supplies of 200mm silicon carbide (SiC) wafers, supporting its shift to larger-diameter manufacturing. The deal builds on a 20-year relationship between the two companies and moves their existing wafer supply arrangement from 150mm to 200mm substrates. The agreement highlights the growing importance of securing SiC substrate capacity as semiconductor manufacturers scale production for electric vehicles, renewable energy and AI data centers. For Europe’s power semiconductor industry, it also signals how manufacturers are diversifying their supply chains while pursuing lower production costs. Infineon expands 200mm SiC supply chain The agreement adds to Infineon’s multi-source substrate procurement strategy, designed to improve supply security, manufacturing flexibility and scalability as demand for SiC power devices increases. “Silicon carbide is at the heart of the energy transition, and securing a high-quality, resilient supply of 200-millimeter substrates is essential to delivering on our customers’ long-term commitments,” said Alexander Gorski, Chief Operations Officer at Infineon. “This agreement further broadens our strong supply base for our 200-millimeter high-volume manufacturing, building on a 20-year supply relationship between our two companies. It strengthens supply chain security for our customers and provides additional flexibility and scalability to support Infineon’s future growth.” Moving to 200mm wafers is a key part of Infineon’s SiC manufacturing strategy. Compared with 150mm substrates, the larger wafers provide more usable die area, potentially reducing manufacturing costs per device and improving production efficiency. The transition also supports Infineon’s 200mm SiC manufacturing facility in Kulim, Malaysia, which the company is developing as a major global production hub for silicon carbide power semiconductors. AI data centers drive new SiC demand Beyond established applications in electric vehicle drivetrains, solar inverters and industrial motor drives, Infineon sees AI datacenters emerging as another growth market for SiC power devices. As hyperscale operators expand their AI infrastructure, power conversion efficiency is becoming increasingly important for controlling energy consumption and operating costs. SiC devices offer advantages in switching efficiency and thermal performance, making them attractive for power conversion stages where conventional silicon devices face efficiency or performance limitations. These developments could create additional demand for high-quality 200mm SiC substrates as power semiconductor manufacturers expand capacity to serve multiple markets. Larger wafers support manufacturing economics The industry-wide move toward 200mm SiC manufacturing is aimed at improving economies of scale while supporting higher-volume production. For Infineon, securing additional substrate sources is particularly important as it ramps up its manufacturing capabilities and works to maintain consistent wafer quality across its global production network. The Wolfspeed agreement gives Infineon another long-term supply arrangement as it prepares for future growth in SiC applications, while reinforcing the importance of wafer sourcing partnerships in the increasingly competitive power semiconductor market. The post Infineon secures 200mm SiC wafer supply deal with Wolfspeed appeared first on eeNews Europe .