Semiconductor maker Wolfspeed plans to spend $750 million on preliminary terms from the U.S. Department of Commerce to build one factory in North Carolina and expand another in Now York, officials said. The company announced this on October 15th.
The funding comes from the CHIPS and Science Act of 2022, which established $39 billion to help build, expand, and modernize semiconductor chip manufacturing plants, known as fabs, and their suppliers, with the goal of strengthening the domestic supply chain. obtained from. In addition, Wolfspeed said it has reached an agreement to raise an additional $750 million in new financing from a group of investment funds and will receive a $1 billion cash refund from the CHIPS Act Advanced Manufacturing Tax Credit, totaling He said he expected to receive $2.5 billion. Invest more in the project.
“This proposed investment solidifies our leadership position with a first-of-its-kind 200mm silicon carbide manufacturing site in upstate New York and central North Carolina, while contributing to the resiliency and competitiveness of the U.S. supply chain. ” Wolfspeed CEO Greg Lowe said in a statement.
Durham, North Carolina-based Wolfspeed is already building the new $5 billion John Palmore Silicon Carbide Manufacturing Center by Whiting Turner Contracting Company in Siler City, North Carolina.120 The 10,000 square foot facility will produce 200mm silicon carbide wafers. It will be supplied to Wolfspeed’s Mohawk Valley plant near Utica, New York. Production at the Siler City facility is expected to begin next year, with the full facility expected to be completed in stages by 2030.
The $1.2 billion Mohawk Valley facility was completed in 2022 and will produce 200mm chips using 200mm wafers. The facility received LEED BD+C: New Construction Silver certification earlier this year. Wolfspeed has said it will expand the factory to meet growing demand from electric vehicle, communications and industrial markets, but has provided few details about the scope of the project.
The announcement comes after Wolfspeed told investors in August that it planned to close its existing factory in Durham, North Carolina, which makes small 150mm chips, but Mr. He said costs are higher than the Mohawk Valley plant.
Wolfspeed and Commerce Department officials still need to finalize a funding agreement. The Biden administration has identified efforts to expand domestic chip production as key to both the economy and national security, as chips are widely used in technology for consumer goods, business applications and military equipment. Commerce Secretary Gina Raimondo said in a statement that the initiative will also help support key emerging technologies such as artificial intelligence, electric vehicles and clean energy.
“The United States is building and strengthening semiconductor manufacturing capabilities to serve our nation’s economic and national security interests while creating jobs and economic opportunities for communities across the country,” she said. said.
Officials have previously announced billions of dollars in funding for other chipmakers, including Texas Instruments, Intel, TSMC and Micron.
