US Chips Act Draws Investments; Wolfspeed To Build New US Factory To Tap Ballooning EV Demand

US Chips Act Draws Investments; Wolfspeed To Build New US Factory To Tap Ballooning EV Demand
  • Wolfspeed, Inc WOLF looks to build a new, state-of-the-art, multi-billion-dollar Materials manufacturing facility in Chatham County, North Carolina. 
  • The investment will likely generate a more than 10x increase from Wolfspeed's current silicon carbide production capacity on its Durham campus.
  • The facility will primarily produce 200mm silicon carbide wafers to supply Wolfspeed's Mohawk Valley Fab.
  • The first phase of the factory, slated for 2024, would have an investment of about $2 billion, and the total investment could reach $5 billion, Reuters reports citing Wolfspeed CTO John Palmour said.
  • Silicon carbide power chips gained traction with electric car makers as they can handle high voltages and are more power efficient. 
  • Wolfspeed said industry analysts estimate these types of power chips will make up more than 20% of the power semiconductor market by 2027, up from only 5% today.
  • The factory, due for completion in 2030, will be the largest silicon carbide materials facility in the world, it said. 
  • "It's actually going to enable eventually about a 13-times increase in our silicon carbide wafer making capacity," Palmour said.
  • Wolfspeed would apply for a federal government grant linked to the recently passed Chips and Science Act.
  • Micron Technology, Inc MU earmarked $40 billion through the decade's end to build leading-edge memory manufacturing in multiple phases in the U.S., likely to create up to 40,000 new American jobs. 
  • Price Action: WOLF shares traded higher by 2.60% at $114.18 on the last check Friday.

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