Mersen: a major contract with Wolfspeed

• Long-term contract to supply Wolfspeed with graphite and other high-tech materials deepens longstanding cooperation in Silicon Carbide semiconductor substrate manufacturing technologies.

• The agreement covers an initial five-year period and could represent sales of around USD 400 million for Mersen over the period.

• By strengthening its positions in electric mobility and energy efficiency of industrial systems, the contract accelerates Mersen’s shift into energy conversion technologies.

Paris, March 14, 2023 – Mersen, a global expert in electrical power and advanced materials, and Wolfspeed, the global leader in Silicon Carbide technology, today announced that they have signed a major contract under which Mersen will supply Wolfspeed with graphite and other high-tech materials. This will support the expansion of Wolfspeed’s materials capacity to meet the rapidly expanding demand for Silicon Carbide materials and devices. The agreement covers an initial five-year period and could represent sales of circa USD400 million for Mersen over the period.

The contract is for graphite related products that serve the Silicon Carbide industry. Silicon Carbide is a disruptive compound semiconductor material for high-growth power applications, including electric mobility, renewable energy, and industrial systems. To meet the steepening demand for Silicon Carbide materials and devices, Wolfspeed is undergoing a significant ramp-up in capacity. In April 2022, the company opened its Mohawk Valley Fab, the world’s first and currently largest 200mm Silicon Carbide wafer fab. Wolfspeed also recently announced construction of the John Palmour Manufacturing Center for Silicon Carbide in Siler City, North Carolina, and its planned Silicon Carbide device manufacturing facility in Germany.

Mersen will increase its equipment and capacities to match this surge in demand by Wolfspeed and intends to invest around USD 120 million, mainly in the US, over the 2023-2025 period, adding up to 200 jobs in different locations. Wolfspeed will contribute to the funding with advance payments in several installments.

Luc Themelin, Chief Executive Officer of Mersen, stated: “This agreement further strengthens our 20-year collaboration with Wolfspeed, a leading Silicon Carbide device manufacturer. This contract is a major step for this technology which is critical to the global energy transition. This is fully in line with Mersen’s strategy to significantly increase the share of its business that is linked to sustainable development markets. We are very pleased to take up this very exciting challenge with Wolfspeed, our historical partner in Silicon Carbide semiconductors business.”

Jeff Ferraro, Senior Vice President of Global Procurement and Planning of Wolfspeed, added: “We are delighted to have Mersen’s partnership and support in Wolfspeed’s expansion plans and R&D efforts. Silicon Carbide devices offer greater energy efficiency and are essential in the global shift toward sustainable electrification and an energy efficient future. This contract marks a significant step forward in strengthening our supply chain to support Wolfspeed’s accelerated growth as we continue to lead the way in the global transition from silicon to Silicon Carbide.”

ABOUT MERSEN

Mersen is a global expert in electrical specialties and advanced materials for high-tech industries. With more than 50 industrial sites and 18 R&D centers in 34 countries around the world, Mersen develops custom-built solutions and delivers key products for clients in order to meet the new technological challenges shaping tomorrow’s world. For over 130 years, Mersen has focused tirelessly on innovation to accompany its clients and meet their needs. Be it in wind power, solar power, electronics, electric vehicles, aeronautics, space or countless other sectors, wherever technology is progressing, you will always find a bit of Mersen. We work to constantly contribute to progress, striving daily to improve people’s lives and protect the planet. This corporate commitment has been recognized by external rating agencies, Ecovadis (Gold Medal) and MSCI (AA rating).

INVESTOR AND ANALYST CONTACT
Véronique Boca
VP, Communication Mersen
Tel. + 33 (0)1 46 91 54 40
Email: dri@mersen.com

MEDIA RELATIONS
Guillaume Maujean / Alexia Gachet
Brunswick
Tel.: +33 (0)6 33 06 55 93
Email: mersen@brunswickgroup.com

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