Cree announced yesterday that it has signed a multi-year agreement with STMicroelectronics for a total value of $250 million. Under the agreement, Cree will manufacture and supply its Wolfspeed® silicon carbide (SiC) wafers to STMicroelectronics.

"ST is the only semiconductor company with automotive-grade silicon carbide in mass production today, and we want to press forward to grow our SiC business both in terms of volume and breadth of applications served, targeting leadership in a market estimated at more than $3 billion in 2025, this agreement with Cree will improve our flexibility, sustain our ambition and plans, and contribute to boosting the pervasion of SiC in automotive and industrial applications." said Jean-Marc Chery, president and CEO of STMicroelectronics

"We remain focused on increasing the adoption of silicon carbide-based solutions, and this agreement is a testament to our mission, this is the third multi-year agreement that we have signed this past year in support of the industry's transition from silicon to silicon carbide. As the world leader in silicon carbide, Cree continues to expand capacity to meet the growing market needs, particularly in industrial and automotive applications. We are extremely pleased to continue to support STMicroelectronics as we both invest to accelerate this market." said Gregg Lowe, CEO of Cree.

“This deal is bigger than all of Wolfspeed was just a year ago.” Gregg Lowe added in an interview.