Power chip maker Wolfspeed Inc is reportedly planning to build a factory in Germany for more than 2 billion euros ($2.17 billion), according to an article in the German business newspaper Handelsblatt. The German auto supplier ZF will hold a minority stake in the project, the report said, citing sources familiar with the matter. The factory is expected to begin production in four years, in the small southwestern state of Saarland.
Wolfspeed, a subsidiary of Cree Inc, specializes in the production of wide bandgap semiconductors, which are used in a range of applications, including electric vehicles, renewable energy, and 5G communications. The company is based in Durham, North Carolina, and currently operates a manufacturing facility in Durham as well as a research and development center in Silicon Valley.
The news comes as many companies are investing in chip production in Europe, as the ongoing global chip shortage has highlighted the need for diversifying supply chains and reducing dependence on Asia. Intel last year announced plans to build a mega chip manufacturing complex in Magdeburg, Germany, as part of its $88 billion investment drive across Europe.
A spokesperson for the economics ministry of Saarland declined to comment on the Handelsblatt report, and Wolfspeed and ZF also declined to comment. The report did not mention the specific products that will be produced in the new factory, but it is likely that it will be used to manufacture wide bandgap semiconductors.
In conclusion, Wolfspeed Inc, a US power chip maker is reported to be planning to build a factory in Germany for more than 2 billion euros ($2.17 billion), according to an article in the German business newspaper Handelsblatt. The German auto supplier ZF will hold a minority stake in the project, the report said, citing sources familiar with the matter. The factory is expected to begin production in four years, in the small southwestern state of Saarland. The company specializes in the production of wide bandgap semiconductors, which are used in a range of applications, including electric vehicles, renewable energy, and 5G communications.
