SolarEdge Strengthens Solar Supply Chain

• SolarEdge has announced a long-term supply agreement with Infineon Technologies  
• The deal relates to some critical components as power and wide band gap for its solar business  
• SolarEdge says this deal is part of its strategy to ensure supply chain resiliency

Leading German semiconductor manufacturer Infineon Technologies has secured a multi-year Capacity Reservation Agreement (CRA) with Israel based SolarEdge Technologies as part of the latter's strategy to strengthen its supply chain of the critical materials for its business.   

"Securing the capacity level of critical components such as power and wide band gap from Infineon further enhances SolarEdge's supply chain resiliency. This capacity reservation agreement with Infineon is in line with our strategy to continue leading the global industry in solar energy advancement," shared SolarEdge Chief Operating Officer Uri Bechor.   

SolarEdge has, in the past, suffered from shortage of components for its product range including semiconductor chips, especially as the world recovered from pandemic related challenges. While supply chain concerns are easing now, SolarEdge would need to lock in supply as it undertakes capacity expansion for solar inverters in the US (see SolarEdge Reports Record Q1/2023 Revenues).  

Infineon produces switches, sensors, controllers, and other such equipment for use in solar inverters for utility, commercial as well as residential use.   

Under the agreement, the German supplier will ship critical components for a variety of SolarEdge products, said the duo in a joint statement without sharing too many details.     

"With the latest investments in silicon carbide (SiC) and gallium nitride (GaN) manufacturing capacity, Infineon underlines its commitment to be a leading partner in climate technologies such as solar power," said Infineon's Chief Marketing Officer, Andreas Urschitz.