Shares of semiconductor producer Wolfspeed soared Wednesday after the company announced a decade-long deal to supply materials to Tokyo-based semiconductor maker Renesas Electronics.
The company received a $2 billion deposit from Renesas in exchange for a 10-year supply commitment of silicon carbide bare and epitaxial wafers. A wafer is a small disc that is used in the production of electronic components such as chips.
Shares of Wolfspped jumped nearly 13% Wednesday morning to $64.03. Renesas stock climbed 0.6% to $9.72.
“The wafer supply agreement with Wolfspeed will provide Renesas with a stable, long-term supply base of high-quality silicon carbide wafers,” Renesas CEO Hidetoshi Shibata said in a statement. “This empowers Renesas to scale our power semiconductor offerings to better serve customers’ vast array of applications.”
The stock movement is a welcome sight for Wolfspeed shareholders. Prior to Wednesday, the stock had fallen 18% in 2023.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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