Wolfspeed, a US-based silicon carbide (SiC) chipmaker, has secured up to US$750 million in federal funding to construct a new wafer plant in North Carolina and expand its New York operations. These projects are expected to generate more than 5,000 jobs.
On the 15th, Wolfspeed announced, in conjunction with the White House, that it had signed a non-binding preliminary memorandum of terms (PMT) with the Biden administration. This agreement positions the company to receive up to US$750 million in direct funding under the CHIPS and Science Act. The funding will support Wolfspeed's US$6 billion expansion plan, which includes building a new SiC wafer facility in North Carolina and increasing its manufacturing capacity in New York.
Wolfspeed's planned Siler City, North Carolina, plant will be the largest SiC wafer facility in the US and the world's first high-capacity, 8-inch SiC wafer site. Concurrently, the company's Marcy, New York, facility will undergo an approximately 30% capacity increase, transforming it into the world's first fully automated 8-inch SiC power component production plant.
Through these expansions, Wolfspeed aims to achieve a fivefold increase in SiC component output and a tenfold boost in 8-inch material capacity.
In addition to the government grant, Wolfspeed will secure an additional US$750 million in financing from an investment group led by Apollo, The Baupost Group, Fidelity Management & Research Company, and Capital Group, as well as US$1 billion in advanced manufacturing tax credits.
Silicon carbide's superior chemical and physical properties compared to traditional silicon make it critical for improving energy efficiency and durability in semiconductors.
Wolfspeed's SiC technology is primarily used in EVs and PHEVs, enhancing driving range, reducing charge times, and lowering system costs. Its components are also widely used in renewable energy, industrial, and defense applications.
US Secretary of Commerce Gina Raimondo stated that Wolfspeed's expansion is essential for revitalizing local semiconductor production, strengthening the nation's leadership in technologies such as AI, EVs, and clean energy.
