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Materials

Showa Denko secures wafer supply deal with power chip leader Infineon

Agreement seizes on growing demand for silicon carbide in solar energy and EV chargers

A clean room at an Infineon plant: The German chipmaker has a wafer supply deal with Japan's Showa Denko.   © Reuters

TOKYO -- Materials group Showa Denko has signed a two-year contract with Infineon Technologies to supply the German chipmaker with silicon carbide wafers, a crucial input for power semiconductor devices used in electric vehicle chargers and solar power generation, the Japanese company said Thursday.

The deal gives Showa Denko -- the world leader silicon carbide (SiC) wafer sales -- a clearer picture of demand for its investment plans through Infineon's commitment to yearly minimum purchase. For Infineon, the world's top maker of power semiconductors, the agreement addresses procurement constraints by giving it an assurance of supply volume.

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