The global shift from 400V to 800V electric vehicle (EV) charging systems is driving a sharp increase in demand for silicon carbide (SiC) power devices, as noted by Wolfspeed, a US-based semiconductor manufacturer. This trend has played a key role in Wolfspeed’s strong quarterly revenue growth, even amid a downturn in the broader automotive semiconductor market.
In the quarter ending June 30, Wolfspeed reported that its revenue from EV-related sales more than doubled compared to the previous year. The company expects this figure to grow by about 300% year-over-year in the next quarter, ending September 30. EVs accounted for around 50% of Wolfspeed’s power device revenue in the most recent quarter, up significantly from 25% a year ago. By the end of September, this share is projected to rise above 60%.
Neill Reynolds, Wolfspeed’s Chief Financial Officer, highlighted that while short-term EV adoption rates have been revised downward, the demand for SiC in EVs remains robust. The move to 800V systems, which require the high-power capabilities offered by SiC technology compared to traditional silicon devices, is a key driver of this demand.
Industry analysts predict that by 2027-30, over 90% of new EVs will be built with 800V systems. In line with this trend, approximately 70% of Wolfspeed’s $2 billion in design-ins from the June quarter were linked to 800V applications. Many EV designs Wolfspeed has developed over the past 5-7 years are now moving into production. In the last quarter alone, about $500 million worth of new designs received approval for use, supporting more than 125 EV models across over 30 original equipment manufacturers (OEMs) in the coming years.
While the automotive sector leads in adopting SiC technology, Gregg Lowe, Wolfspeed’s President and CEO, pointed out that high-voltage applications in other areas, such as AI data centers, electric mobility, and solar inverters, are also expected to drive demand in the future.
To meet this rising demand, Wolfspeed is transitioning its power device production to 200mm semiconductors at its new Mohawk Valley facility in New York, where unit costs are lower than at its 150mm device facility in Durham, North Carolina. The company plans to complete the construction of its new JP Siler City materials factory by mid-2025, which will supply wafers to Mohawk Valley, aiming for 30% capacity utilization.
While the Durham facility has been running at reduced rates due to weakness in the industrial and energy markets, Wolfspeed is assessing the timing of the 150mm device fab’s closure as production scales up at Mohawk Valley. Despite this shift, the company remains confident in its long-term strategy, which continues to see industrial and energy products as a significant part of its portfolio, according to Reynolds.
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