Chip maker Wolfspeed to build new U.S. factory to meet surging EV demand

By Jane Lanhee Lee

(Reuters) – U.S. energy chip maker Wolfspeed Inc on Friday mentioned it can construct a brand new multi-billion greenback manufacturing unit in Chatham County, North Carolina to make the uncooked supplies used for chips that energy issues like electrical automobiles as demand surges.

Whereas conventional energy administration chips have been made with silicon, which can be used for microchips that run computer systems and telephones, Wolfspeed makes use of a comparatively newer materials referred to as silicon carbide to make chips. Wolfspeed is taken into account a frontrunner on this expertise and says it produces greater than 60% of the world’s silicon carbide.

Silicon carbide energy chips have been gaining traction with electrical automotive makers as they will deal with excessive voltages and are extra energy environment friendly. Wolfspeed mentioned trade analysts estimate these kind of energy chips will make up greater than 20% of the facility semiconductor market by 2027, up from solely 5% in the present day. 

The manufacturing unit, due for completion in 2030, would be the largest silicon carbide supplies facility on the earth, it mentioned. The silicon carbide wafers from the plant will initially be used primarily for Wolfspeed’s personal chip manufacturing wants.

Earlier this 12 months Wolfspeed opened the world’s first 200 mm silicon carbide fabrication facility in Mohawk Valley, New York, and is scoping places for one more giant facility, John Palmour, Wolfspeed’s chief expertise officer, advised Reuters. Different chip makers use smaller sized wafers. Usually the bigger the wafer, the extra superior the manufacturing expertise is.

Palmour mentioned the brand new supplies manufacturing unit is a couple of 40 minute drive from the corporate’s present factories in North Carolina. “It is really going to allow finally a couple of 13-times improve in our silicon carbide wafer making capability,” he mentioned.

The primary section of the manufacturing unit, slated for 2024, would have an funding of about $2 billion and the entire funding might attain $5 billion, Palmour mentioned.

Wolfspeed would apply for a federal authorities grant linked to the just lately handed Chips and Science Act, he added.

(Reporting By Jane Lanhee Lee; enhancing by Richard Pullin)