Wolfspeed
stock was surging Wednesday after the chip company announced a 10-year deal to supply Tokyo-based semiconductor maker
Renesas Electronics
with silicon carbide bare and epitaxial wafers.
Wolfspeed
(ticker: WOLF) said Wednesday that it executed a $2 billion deposit from Renesas (RNECY) to secure a 10-year supply commitment of wafers. A wafer is a thin, disc-shaped piece of equipment used as the foundation for building electronic components like chips.
“The wafer supply agreement with Wolfspeed will provide Renesas with a stable, long-term supply base of high-quality silicon carbide wafers. This empowers Renesas to scale our power semiconductor offerings to better serve customers’ vast array of applications,” said Hidetoshi Shibata, chief executive of Renesas, in a press release.
The companies said the need for more semiconductors was “dramatically increasing” thanks to the growth of electric vehicles and clean energy.
Shares of Wolfspeed surged 13% to $64.22 and were on pace for their largest percentage increase since August 2022, according to Dow Jones Marking Data. The stock has fallen 7% this year. American depositary receipts of Renesas were rising 0.5% to $8.71. Shares of Renesas have soared 117% in 2023.
Write to Angela Palumbo at [email protected]
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