Wolfspeed plans to build a two million-square-foot facility in Siler City, a one-hour drive from Raleigh, in what would be the US’ largest silicon carbide wafer manufacturing facility. It also plans to expand its manufacturing facility in Marcy, New York.
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“As a key player in the semiconductor industry, this proposed funding will enable us to solidify our leadership position with a first-of-a-kind 200mm silicon carbide manufacturing footprint in New York and North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain," said Gregg Lowe, CEO of Wolfspeed.
Wolfspeed manufactures wafers and devices made from silicon carbide, a chemical considered to be highly energy-efficient and durable compared to traditional silicon.
Silicon carbide’s chemical properties allow it to withstand higher voltages and temperatures, making it ideal for applications in renewable energy systems.
Wolfspeed’s chips are found in a variety of industrial and AI applications, as well as in national security solutions used by the US military.
Using its recently secured direct funding, Wolfspeed plans to construct the John Palmour Manufacturing Centre for Silicon Carbide, which will be the world’s first high-volume 200mm silicon carbide wafer manufacturing facility.
The company also plans to expand its existing plant in New York, with plans to make it fully automated. The Marcy facility would increase chip production capacity by around 30%, Wolfspeed suggested.
The chip manufacturer said it expansion plans supported by the CHIPS Act would help it achieve a five-fold increase in its silicon carbide device output and a ten-fold increase in overall 200mm materials production capacity.
“We intend to build a booming semiconductor R&D industry in the United States that will attract and keep semiconductor manufacturers in this country,” said Laurie Locascio, Under Secretary of Commerce for standards and technology and the director of the National Institute of Standards and Technology.
“These efforts depend on a reliable domestic supply of specialised semiconductor wafers and devices, such as those produced by firms like Wolfspeed. With proposed investments such as this, we are realising the goals of the CHIPS and Science Act by building out the domestic supply chains that will keep America’s R&D capacity healthy and competitive.”
Wolfspeed becomes the latest in an ever-growing list of semiconductor manufacturers taking advantage of the financial incentives offered under the CHIPS and Science Act.
Notable recipients include Intel, which plans to build chip plants in Arizona, Ohio, New Mexico and Oregon, and TSMC which will construct a Fab in Phoenix.
There have also been funding awards for SK Hynix, GlobalWafers, Samsung, Micron, and BAE Systems.
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