Wolfspeed Likely To Divulge Germany EV Plant Details Worth €2B To Bail Out Carmakers From Chip Crisis

German chip supplier ZF Friedrichshafen and U.S. chipmaker Wolfspeed, Inc WOLF will likely share plans to build an electric vehicle chip plant in the Saarland region.
The move coincided with carmakers like Mercedes-Benz Group AG DMLRY and Volkswagen AG VWAGY battling a crisis of vital semiconductors for their electric vehicle transition, Reuters reports.
The project will cost over €2 billion ($2.2 billion), and ZF will hold a minority stake, with production likely to begin in four years.
Europe's governments tried to attract new industrial projects threatened by U.S.'s Inflation Reduction Act (IRA), which promised massive subsidies for EVs manufactured in the U.S.
Europe's top carmaker Volkswagen had warned against the chip squeeze, implying a volatile 2023 with likely improvement in the supplies.
Intel Corp INTC recently shared its commitment to building its chip fabrication plant in Magdeburg, Germany, after a fallout with the government over subsidies.
Intel worked out funding details with the government.
German chipmaker Infineon Technologies AG (OTC: IFNNF) IFNNY eyed several billion euros on the right takeover target as it hunted for acquisitions.
Infineon saw growth in electromobility, autonomous driving, renewable energy, data centers, and the Internet of things.
Price Action: WOLF shares traded higher by 0.75% at $77.60 premarket on the last check Wednesday.