Infineon Technologies says it is diversifying its silicon carbide (SiC) supplier base and has signed a long-term agreement with Chinese SiC supplier TanKeBlue to secure additional competitive SiC sources.

TanKeBlue will supply the Germany-based semiconductor manufacturer with competitive and high-quality 150-millimeter SiC wafers and boules for the manufacturing of SiC semiconductors, covering a double-digit share of the forecasted demand in the long term.

The agreement between Infineon and TanKeBlue contributes to general supply chain stability, also with regard to the growing demand for SiC semiconductor products for automotive, solar and EV charging applications and energy storage systems in the Chinese market.

It will also support the rapid growth of the emerging semiconductor material SiC. The agreement will focus on 150-millimeter SiC material in the first phase, but TanKeBlue will also provide 200-millimeter SiC material to support Infineon’s transition to 200-millimeter wafer diameter.

“Infineon is significantly expanding its manufacturing capacities at its production sites in Malaysia and Austria to meet the growing demand for SiC. In order to offer the most comprehensive product range possible to our customers, Infineon is currently doubling down on its investments in SiC technology and product portfolio. In this context, we are implementing a multi-supplier and multi-country sourcing strategy to increase resilience to the benefit of our broad customer base,” said Angelique van der Burg, Chief Procurement Officer at Infineon. “TanKeBlue provides excellent material performance and we are pleased to sign a competitive agreement with them.”

“We welcome the opportunity to team up with our customer Infineon, a global leader in power semiconductors. TanKeBlue plans to continuously improve its SiC material and develop its next generation of 200-millimeter wafer technology. We value Infineon as an excellent customer in this regard,” said Yang Jian, CEO of TanKeBlue.

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Infineon is currently expanding its SiC manufacturing capacity in order to achieve its target of a 30 percent global market share by the end of the decade.

Infineon says its SiC manufacturing capacity will increase tenfold by 2027. A new plant in Kulim, Malaysia is scheduled to start production in 2024, adding to Infineon’s manufacturing capacities in Villach, Austria. Today, Infineon already provides SiC semiconductors to more than 3,600 automotive and industrial customers worldwide.