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BorgWarner To Invest $500M In Wolfspeed's Financing Transaction; Under Multi-Year Agreement, BorgWarner Will Be Entitled To Purchase Up To $650M Of Devices Annually

Benzinga · 11/16/2022 07:19

Wolfspeed, Inc. (NYSE:WOLF), the global leader in Silicon Carbide technology, and BorgWarner Inc. (NYSE:BWA), a global product leader in delivering innovative and sustainable mobility solutions for the vehicle market, today announced a strategic partnership that calls for BorgWarner to invest $500 million in Wolfspeed's financing transaction, which was announced earlier today by Wolfspeed, in exchange for a silicon carbide device capacity corridor. Under the multi-year agreement between BorgWarner and Wolfspeed, BorgWarner will be entitled to purchase up to $650 million of devices annually as BorgWarner requirements increase. Details of the Wolfspeed financing can be found in Wolfspeed's separate press release and Form 8-K filed with the SEC earlier today. BorgWarner has also filed a Form 8-K disclosing its commitment to invest.