Wolfspeed surges 13% on GE Aerospace silicon carbide partnership

Wolfspeed Inc. jumped 13% in premarket trading after partnering with GE Aerospace to develop high-voltage silicon carbide power modules for aerospace, defense and industrial electrification markets.

"The collaboration aims to accelerate the commercial readiness and market acceptance of high-voltage silicon carbide solutions," Robert Feurle, chief executive officer at Wolfspeed, said in a statement.

Under the memorandum of understanding, the companies will develop standards for silicon carbide-based power modules using Wolfspeed's 10 kV MOSFET die — the first commercially available device of its kind. GE Aerospace recently qualified high-voltage power units for U.S. military ground vehicles and demonstrated its fourth-generation silicon carbide power MOSFET at its research center in Niskayuna, New York. Wolfspeed operates high-volume 200 mm silicon carbide manufacturing facilities.

The partnership aligns with U.S. government priorities to accelerate critical technologies for strategic markets including artificial intelligence, where demand for faster power delivery is rising. Higher-voltage modules reduce system complexity by requiring fewer series-connected devices, enabling more compact and efficient designs. GE Aerospace, with a market capitalization of $342 billion and roughly 57,000 employees, brings significant scale to Wolfspeed's technology.

The deal strengthens supply chain resilience for silicon carbide components, a material that operates at higher voltages and temperatures than traditional silicon. Wolfspeed's 10 kV MOSFET allows systems to handle more power with fewer components, reducing overall system cost and improving reliability — a key consideration for defense platforms and industrial electrification.

For GE Aerospace, the partnership extends its push into power electronics beyond aircraft engines. The company's installed base of approximately 50,000 commercial and 30,000 military engines provides a potential channel for integrating silicon carbide power modules into next-generation platforms.

Wolfspeed shares, which had declined roughly 40% year-to-date before Monday's move, were trading at $55.06. The stock remains under pressure from broader semiconductor sector weakness and concerns about the pace of silicon carbide adoption in electric vehicles. The GE Aerospace partnership diversifies Wolfspeed's end-market exposure beyond automotive into aerospace and defense, where qualification cycles are longer but margins tend to be higher.

This article is for informational purposes only and does not constitute investment advice.