Chipmaker Wolfspeed builds new factory in US to meet growing demand for electric vehicles
U.S. power chip maker Wolfspeed Inc on Friday said it will build a new multibillion-dollar plant in Chatham County, North Carolina, to produce the raw materials used for chips that provide power amount for things like tram when demand is high.
While traditional power management chips are made of silicon, which is also used in the microchips that run computers and phones, Wolfspeed uses a relatively newer material called silicon carbide to make the chip. Wolfspeed is considered a leader in this technology and says it produces more than 60% of the world’s silicon carbide.
Silicon carbide power chips have been gaining traction with tram because they can handle high voltage and save more power. Wolfspeed said industry analysts estimate these power chips will account for more than 20% of the power semiconductor market by 2027, up from just 5% today.
The plant, scheduled for completion in 2030, will be the largest silicon carbide materials facility in the world, it said. The silicon carbide wafers from the factory will initially be used primarily for Wolfspeed’s own chip production needs.
Earlier this year, Wolfspeed opened the world’s first 200 mm silicon carbide fabrication facility in Mohawk Valley, New York and is looking for a site for another large facility, said John Palmour, Wolfspeed Chief Technology Officer, told Reuters. Other chip manufacturers use smaller sized wafers. In general, the larger the wafer, the more advanced the manufacturing technology.
Palmour said the plant that produces the new material is about a 40-minute drive from the company’s existing plants in North Carolina. “It will actually enable a 13-fold increase in our silicon carbide wafer production capacity,” he said.
Palmour said that the first phase of the plant, expected in 2024, will have an investment of about $2 billion and the total investment could be up to $5 billion.
Wolfspeed will apply for federal government subsidies related to the recently passed Science and Chips Act, he added.
