Dive Brief:
- Wolfspeed is set to receive $750 million in funding under the CHIPS and Science Act to help build a North Carolina semiconductor plant and expand its New York facility, the Commerce Department announced Tuesday.
- The 2 million-square-foot silicon carbide wafer manufacturing facility in Siler City, North Carolina, and expanded device manufacturing facility in Marcy, New York, will be part of Wolfspeed’s growing silicon carbide 200mm device and wafer manufacturing capacity.
- Both projects will create over 5,000 jobs and are part of the company’s previously announced more than $6 billion capacity expansion plan.
Dive Insight:
In addition to the CHIPS funds, Wolfspeed secured $750 million in financing from an investment group led by Apollo, The Baupost Group, Fidelity Management & Research Co. and the Capital Group, according to the company’s press release.
Wolfspeed’s semiconductors are used in electric vehicles, plug-in hybrids, renewable energy systems, industrial capacities and artificial intelligence applications, according to the Commerce Department.
At the New York facility, the CHIPS funding would increase production capacity by approximately 30%. For its workforce, the semiconductor company established partnerships to develop and recruit more women and military veterans, as well as local career organizations to create a registered apprenticeship program.
Meanwhile, for the North Carolina facility, Wolfspeed partnered with North Carolina Agricultural and Technical State University to develop silicon carbide manufacturing credentials and workforce training programs.
Wolfspeed is also offering financial support in both locations to increase the capacity or operating hours of existing childcare providers while providing a stipend and a Dependent Care Flexible Spending Account to employees to help lower costs.
The company plans to discuss the production plan announcements during its next earnings call. Last quarter, Woldspeed disclosed it was closing one of its 150-mm silicon carbide wafer production facilities in Durham, North Carolina, given the plant’s age and equipment issues.
The state, however, remains a significant technology hub in the country. Vietnam-based EV maker VinFast started production this July at its first North American manufacturing plant, which Wolfspeed is contracted to supply with chips.
