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.
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