DURHAM – Caught up in the trade war between the US and China as well as the ban on technology sales to China-based Huawei that combined have cost millions in sales, Cree early today disclosed some good news.
The semiconductor, LED and power supply company disclosed a partnership with Delphi, a $5 billion company with more than 20,000 employees that makes automotive propulsion technologies.
Financial terms of the deam weren’t disclosed, but the companies said they will “ramp up” production of equipement for electric vehicles in 2022. Their client is a “a premium global automaker.”
The news sparked a slight surge in Cree (Nasdaq: Cree) shares in pre-market trading from Friday’s closing price of $45.82.
Using silicon carbide semiconductors from Cree, the firms said they will deliver a product that will “enable faster, smaller, lighter and more powerful electronic systems” for electric vehicles.
The Dephi inverter. Delphi photo)
Delphi will provide power inverters which Delphi describes this way: “Much like how engines and alternators work together on conventional vehicles, hybrid and EV motors use inverters and converters to manage power to and from the battery pack to the motors and other on-board systems.”
The collaboration will deliver a solution that will “extend driving range and deliver faster charging times,” the companies said in a joint statement.
Cree’s semiconductors will be combined with 800 Volt inverters from Delphi, which as a company says: “We are strategically positioned for the changes ahead in autonomous, connected and electric vehicles.”
What if China ‘just never came back?’ Cree CEO warns of trade war, Huawei ban impact
Delphi says its new “silicon carbide inverter operating at 800 Volts will provide vehicle engineers with additional flexibility to optimize other powertrain systems. Options include more range or a smaller battery; ultra-fast charging or smaller, lighter, cheaper cables; and greater harvesting of vehicle kinetic energy when braking, further extending vehicle range.”
Cree CEO on the deal
“Cree’s technology is at the heart of the dramatic change underway in EVs, and we are committed to supporting the automotive industry as it transitions from silicon-based designs to more efficient, higher performing silicon carbide solutions,” said Gregg Lowe, CEO of Cree, in a statement. “This partnership with Delphi Technologies will help drive the adoption of silicon carbide in the automotive sector. As the world leader in silicon carbide, Cree is continuing to expand capacity to meet market demands with our industry-leading power MOSFETs (metal–oxide–semiconductor field-effect transistor) to help achieve a new, more efficient future.”
Cree to invest $1B in Durham for ‘mega factory,’ chip manufacturing, will add jobs
Cree is building a new $1 billion manufacturing plant in Durham to ramp up its semicondcutor production.
“Our collaboration with Cree will create a significant benefit to automakers as they work to balance meeting stricter global emissions regulations with consumer appetite for electric vehicles. Overcoming driver anxiety related to electric vehicle range, charging times and cost will be a boon for the industry,” said Delphi CEO Richard Dauch.
Cree is banking much of its future on new semiconductors as well as other power technologies developed by its Wolfspeed subsidiary.
Delphi and Cree noted research that shows 27 percent (30 million) of all vehicles sold in 2030 will be electric powered.
