The Department of Commerce (DoC) announced today it has reached a preliminary agreement with Wolfspeed, Inc., for up to $750 million in proposed direct funding under the CHIPS and Science Act to support the construction of a new silicon carbide wafer manufacturing facility in North Carolina.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal would support Wolfspeed’s investment of more than $6 billion and 5,000 jobs in both Siler City, N.C., and Marcy, N.Y. Wolfspeed’s new facility in North Carolina aims to secure a reliable domestic supply of semiconductors that will underpin the future energy economy and AI boom.
In addition, the CHIPS and Science Act investment will catalyze Wolfspeed’s expansion of its device manufacturing facility in New York.
“Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies,” said Secretary of Commerce Gina Raimondo.
“Because of the Biden-Harris Administration’s CHIPS and Science Act, the United States is building and fortifying our semiconductor manufacturing capabilities to serve our economic and national security interests while creating jobs and economic opportunities for communities across the country,” she said.
The proposed investment will support the construction of the John Palmour Manufacturing Center for silicon carbide in North Carolina. This new, 2-million-square-foot facility would become the largest silicon carbide wafer manufacturing facility in the U.S. and the world’s first high-volume 200mm silicon carbide wafer manufacturing facility.
Founded in North Carolina in 1987, Wolfspeed is the world’s leading manufacturer of wafers and devices made from silicon carbide, a compound which has favorable chemical and material properties compared to traditional silicon, enabling Wolfspeed’s semiconductors to be highly energy-efficient and durable. The silicon carbide devices manufactured by Wolfspeed power electric vehicles, renewable energy systems, industrial capacities, and AI applications. Furthermore, Wolfspeed supplies next-generation silicon carbide technologies used in national security applications to the U.S. military.
In conjunction with the Siler City development, Wolfspeed plans to expand its existing silicon carbide device manufacturing facility in New York, which would contribute to the growth of the facility as the world’s first fully automated 200mm silicon carbide power device fab and increase its production capacity by approximately 30 percent.
Due to these proposed projects, Wolfspeed anticipates achieving a five-fold increase in their silicon carbide device output and a ten-fold increase in 200mm materials production capacity.
“We’re grateful for the continued support of Secretary Raimondo and the CHIPS Office throughout this process, as this announcement marks a pivotal milestone in Wolfspeed’s long-term growth strategy and important technology,” said Wolfspeed CEO Gregg Lowe. “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.”
