BorgWarner Invests $500 Million in Wolfspeed to Secure Annual Capacity Supply of Silicon Carbide Devices

On November 16, Wolfspeed and BorgWarner announced a strategic cooperation. BorgWarner will invest $500 million in Wolfspeed in exchange for the supply of silicon carbide equipment capacity. Based on a multi-year agreement between BorgWarner and Wolfspeed, the former has the right to purchase up to $650 million per year in components as demand increases.

Frédéric Lissalde, president and CEO of BorgWarner, said that as its electric vehicle business continues to grow, silicon carbide-based power electronics are playing an increasingly important role for users. I believe that through this agreement, it will help ensure that BorgWarner has a reliable supply of high-quality silicon carbide devices, which is of great significance to the company's inverter growth plan...I believe that the cooperation with Wolfspeed will promote innovation and accelerate Helping the global automotive industry achieve electrification transformation.

It is reported that BorgWarner's strategic goal of "gathering momentum and moving forward" is to increase the revenue of electric vehicle business from less than US$350 million in 2021 to US$4.5 billion in 2025. Based on new business incentives and mergers and acquisitions announced as of its third-quarter earnings release, BorgWarner sees EV revenue on track to reach about $4 billion in 2025.