Wolfspeed's Silicon Carbide Demand Surges with EV Transition to 800V Architecture

The global transition to 800V electric vehicle (EV) charging systems from the traditional 400V architecture is fueling a significant increase in demand for silicon carbide (SiC) power devices, according to US-based semiconductor manufacturer Wolfspeed. This trend has been a key driver behind Wolfspeed's strong quarterly revenue growth, despite a general downturn in the broader automotive semiconductor market.

Wolfspeed reported that its EV-related revenue more than doubled in the quarter ending June 30 compared to the previous year, and it is expected to increase by around 300% year-on-year in the upcoming quarter ending September 30. Electric vehicles accounted for approximately 50% of Wolfspeed's power device revenue in the most recent quarter, a substantial rise from 25% a year earlier. This percentage is projected to climb above 60% by the end of September.

Chief Financial Officer Neill Reynolds emphasized that while short-term EV adoption rates have been revised downward, the demand for SiC in EVs remains robust. The shift to 800V systems, which require higher power capabilities that SiC technology offers over conventional silicon devices, is a major factor driving this demand.

Industry experts predict that by 2027-30, over 90% of new EVs will utilize 800V systems. Reflecting this trend, approximately 70% of Wolfspeed's $2 billion in design-ins from the June quarter were linked to 800V applications. Many of the EV designs Wolfspeed has developed over the past 5-7 years are now moving into production, with around $500 million in new designs receiving approval for use during the last quarter. This backlog supports over 125 EV models across more than 30 original equipment manufacturers (OEMs) in the coming years.

While the automotive sector is leading the adoption of SiC technology, Wolfspeed’s President and CEO, Gregg Lowe, noted that high-voltage applications in energy markets, such as AI data centers, electric mobility, and solar inverters, are also expected to drive further demand in the coming years.

Wolfspeed is accelerating the transition of its power device production to 200mm semiconductors at its new Mohawk Valley facility in New York, where unit costs are lower compared to its 150mm device facility in Durham, North Carolina. The company expects to complete construction of its new JP Siler City materials factory by mid-2025, which will supply wafers to Mohawk Valley, aiming for 30% capacity utilization.

Although the Durham facility has been operating at reduced rates due to weaknesses in the industrial and energy markets, Wolfspeed is assessing the timing of the 150mm device fab's closure as production ramps up at Mohawk Valley. However, this shift does not alter the company’s long-term view that industrial and energy products will continue to be a substantial part of its portfolio, according to Reynolds.