Investing.com -- Wolfspeed Inc (NYSE: WOLF) shares jumped 13% in premarket trading Monday after the company announced a Memorandum of Understanding with GE Aerospace (NYSE: GE) to collaborate on high-voltage silicon carbide development.

Under the MOU, the companies plan to develop standards for high-voltage silicon carbide-based power modules to support solid-state transformers, industrial electrification, and next-generation aerospace and defense platforms. The agreement includes the supply of Wolfspeed’s 10 kV MOSFET die and jointly determining standard high-voltage power module formats for commercial introduction.

The collaboration aims to accelerate the commercial readiness and market acceptance of high-voltage silicon carbide solutions across industrial, aerospace and defense markets while strengthening supply chain resilience. The higher-voltage power modules will enable systems with fewer series-connected devices and less complexity, resulting in solutions that are more compact, efficient and reliable.

GE Aerospace recently qualified high-voltage power units for U.S. military ground vehicles, marking them production ready. The company also demonstrated its fourth generation of silicon carbide power MOSFET devices at its Research Center in Niskayuna, N.Y.

Wolfspeed leads the industry in high-volume 200 mm silicon carbide manufacturing and recently introduced the world’s first commercially available 10 kV SiC MOSFET. The scope of the MOU aligns with the United States Government’s stated priorities of accelerating critical technologies for achieving faster time-to-power for strategic markets such as Artificial Intelligence