Wolfspeed contemplates $2.2bn chip manufacturing facility in Germany

Wolfspeed, a US chipmaker, is planning to construct a new $2.18 billion chip manufacturing facility in Saarland, Germany, as part of the company’s wider $6.5 billion capacity expansion strategy.

The 200mm semiconductor fab will be the company’s first European facility, which will manufacture next-generation silicon carbide devices for a wide variety of industrial, automotive, and energy applications.

With the proposed chip production facility, Wolfspeed anticipates to increase its silicon carbide device manufacturing footprint in Europe, meet the increasing customer demand, and achieve its long-term revenue outlook of $4 billion for the financial year 2027.

The 35-acre (14-hectare) facility is expected to receive funding from the Important Project of Common European Interest (IPCEI) for Microelectronics and Communication Technologies as well as from German car parts maker ZF Friedrichshafen.

Wolfspeed plans to construct a $2.2bn chip manufacturing facility in Germany. Photo courtesy of Cristian Ibarra from Pixabay.

Gregg Lowe — Wolfspeed President and CEO said: “Silicon Carbide devices offer greater energy efficiency and are essential in the global shift toward sustainable electrification.

“This new facility will be crucial to supporting our expansion in a capacity constrained industry that is growing very rapidly, especially across the EV marketplace.

“It was important for us to have a facility located in the heart of Europe, near many of our customers and partners, to foster collaboration on the next generation of Silicon Carbide technologies.”

The chip manufacturing facility in Saarland will include sustainability measures such as high percentages of recycled water and reduced emission footprint as well as provide employment to over 600 people at peak operation.

The construction of the Wolfspeed semiconductor fab in Germany is expected to commence in the first half of 2023, subject to approval by the European Commission.

Wolfspeed opened its 200mm Mohawk Valley device fab in the US in April 2022 as part of the $6.5 billion global capacity expansion plan while the first phase of construction for John Palmour Manufacturing Center for Silicon Carbide in North Carolina is scheduled to be complete by the end of the financial year 2024.