Wolfspeed, the US semiconductor manufacturer, has confirmed its plans to build a 200mm wafer plant for SiC semiconductors in Saarland, Germany, in partnership with local supplier ZF Friedrichshafen. The highly automated plant will be the first of its kind in Europe and will replace a former coal-fired power plant in Ensdorf, Saarland.
The project is still waiting for government funding from the European Commission, however it has the support of the German government, with Chancellor Olaf Scholz and Vice Chancellor Robert Habeck joining Saarland’s Minister-President Anke Rehlinger at the announcement event.
As part of the partnership, ZF will make a “sizable financial investment” in exchange for Wolfspeed common shares, and the two companies will establish a joint innovation lab to drive advances in silicon carbide technology. ZF will primarily focus on the R&D center, however, other partners are invited to join and build an end-to-end European silicon carbide innovation network.
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“These initiatives are a significant step towards a successful industrial transformation,” said Holger Klein, CEO of ZF. “They strengthen European supply resilience and, simultaneously, support the European Green Deal and the strategic goals for Europe’s Digital Decade.”
The new facility is expected to create 600 jobs and is part of Wolfspeed’s current $6.5 billion capacity expansion plan, which includes a 200mm chip plant in Mohawk Valley, New York, and the John Palmour Manufacturing Center for Silicon Carbide in North Carolina, USA. European clients for Wolfspeed semiconductors include Mercedes-Benz and Jaguar Land Rover.
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“This new fab represents a big step forward for both Wolfspeed and our regional customers as we enhance the ecosystem for semiconductor production and innovation,” said Gregg Lowe, President and CEO of Wolfspeed. “This new facility will be crucial to supporting our expansion in a capacity-constrained industry that is growing very rapidly, especially across the EV marketplace. It was important for us to have a facility located in the heart of Europe, near many of our customers and partners, to foster collaboration on the next generation of Silicon Carbide technologies.”
SiC semiconductors have higher conductivity and enable higher switching frequencies compared to silicon chips, making them a crucial component for electric vehicles. The SiC components can be operated at higher temperatures, reducing energy consumption and CO2 emissions.
