Gasgoo Munich- Infineon recently signed a new multi-year supply agreement with Wolfspeed for 200 mm silicon carbide (SiC) wafers, shifting the partnership from 150 mm substrate technology to the 200 mm standard.
"This agreement further strengthens Infineon's robust supply base for 200 mm large-scale manufacturing," said Alexander Gorski, COO of Infineon Technologies.
Compared to 150 mm, 200 mm SiC wafers significantly boost production economics. The larger diameter increases usable chip area per wafer, reduces unit substrate costs, and improves overall efficiency.
Infineon is currently building a 200 mm SiC plant in Kulim, Malaysia, aiming for large-scale manufacturing capacity. The company uses multi-source substrates to secure supply.
For years, SiC demand was driven by electric vehicles and solar power. Now, the AI data center market is emerging.
For hyperscale cloud operators managing massive infrastructure, power conversion efficiency in the data center supply chain directly impacts operating costs. With silicon devices nearing practical limits in certain conversion stages, SiC has become a technically viable alternative due to its switching efficiency and thermal performance.
Wolfspeed stated that AI data centers are now its fastest-growing segment, with revenue in the sector expected to more than double in fiscal 2026.
Image source: Wolfspeed
As the global pioneer and leader in SiC substrates, Wolfspeed launched its 200 mm production line in 2022, which has been operating for four years.
Yet the company faced severe financial issues over the past two years. By September 2025, Wolfspeed completed its financial restructuring and emerged from bankruptcy protection.
Over the following year, Wolfspeed secured support from industrial capital, public markets, and the government.
In January, Renesas Electronics took a stake through a share issuance as part of the restructuring plan, becoming a key strategic shareholder. In March, Wolfspeed closed a funding round worth about $476 million—including $379 million in convertible bonds and nearly $100 million in common stock and prepaid warrants—to increase liquidity.
On October 7, the US Department of Defense, through its Strategic Capital Office, issued a conditional commitment for a 30-year loan worth up to $1.5 billion. Funds will be disbursed in tranches based on milestones to strengthen the domestic supply chain for wide-bandgap semiconductors like SiC and gallium nitride.
Infineon's long-term order—alongside the loan from the US Department of Defense and Renesas's investment—signals confidence in a market leader that still holds a technological edge but is only just recovering.
Technologically, Wolfspeed is advancing substrate development while completing the transition to larger device sizes.
On September 27, Wolfspeed began commercial shipments of its 200 mm n-type SiC substrates. With micropipe density below 0.01 per square centimeter and improvements in defect density and wafer shape stability, the product helps device customers improve yields and shorten certification cycles. It is now available for order with dedicated capacity allocated.
On the manufacturing front, Wolfspeed ceased production at all 6-inch (150 mm) lines and closed its 150 mm device facility in Durham, North Carolina. All power devices are now produced at the 8-inch (200 mm) Mohawk Valley fab in Marcy, New York.
