The US Department of Commerce has provisionally agreed to provide silicon carbide semiconductor manufacturer Wolfspeed with up to $750 million in direct funding under the CHIPS and Science Act.
The proposed funding would support the construction of a new silicon carbide wafer manufacturing facility in Siler City, North Carolina, and the planned expansion of Wolfspeed’s device manufacturing facility in Marcy, New York.
The expansion of Wolfspeed’s New York fab will allow the company to increase its production capacity by around 30 percent, with both projects together expected to provide a five-fold increase in Wolfspeed’s silicon carbide device output and a ten-fold increase in its 200mm materials production capacity.
Upon completion, Wolfspeed’s planned 2 million sq ft John Palmour Manufacturing Center in Siler City, North Carolina, would be the largest silicon carbide wafer manufacturing facility in the US and the world’s first high-volume 200mm silicon carbide wafer fab.
In a statement, the Department of Commerce said the two projects would form part of the company’s previously announced $6 billion expansion plan, creating more than 2,000 manufacturing jobs and 3,000 construction jobs across the two states.
Under the terms of the agreement, Wolfspeed is also required to partner with North Carolina Agricultural and Technical State University and commit $4m over a five-year period to establish curriculum and training programs to create undergraduate and graduate silicon carbide manufacturing credentials and career advancement programs for manufacturing workers.
Similar commitments are also required of the company in New York where Wolfspeed has pledged to recruit more women and military veterans into the semiconductor workforce. The company has also agreed to offer financial support and develop programs in both states to address childcare challenges.
“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 US supply chain.”
Founded in North Carolina in 1987, Wolfspeed is the world’s leading manufacturer of wafers and devices made from silicon carbide.
Silicon carbide is a synthetically produced crystalline compound of silicon and carbon. The material provides several advantages over conventional silicon for power applications, including better thermal conductivity, higher switching speeds, and lower dissipation, making it particularly suitable for the manufacturing of high-voltage power devices.
To date, the Department of Commerce has awarded more than $32bn in proposed CHIPS Act funding to companies across 16 states, including GlobalFoundries, TSMC, Samsung Electronics, Micron, SK Hynix, and GlobalWafers.
