Wofulspeed has put plans to build a semiconductor factory in Germany on hold, according to officials and German media reports.
The Durham-based company announced the project in 2023. The company partnered with German auto parts manufacturer ZF to build a factory in the western German state of Saarland, near the borders with Luxembourg and France.
“Here, on the site of a former coal-fired power plant and a reminder of our industrial past, we want to build a bridge. A bridge to a better, cleaner industrial future. ” Wolfspeed CEO Greg Lowe said in the announcement.
The factory was to make chips for electric cars, which are a growing area of Wolfspeed’s business around the world. But on Tuesday, media reports surfaced that ZF would withdraw its investment in the $3 billion project. ZF insisted on withdrawing after Wolfspeed officials said the plant was on hold.
“Wolfspeed is responsible for this project. ZF has always provided intensive and active support,” a ZF spokesperson said in a statement to Reuters.
As of Wednesday morning, Wolfspeed had not responded to WUNC’s request for comment on the future of the Saarland plant. Saarland Prime Minister Anke Rehlinger confirmed the company’s decision.
“The company remains committed to its Ensdorf location. However, in view of market conditions, Wolfspeed will postpone the investment to an unspecified date,” Rehringer said at a press conference. The statement was made at a press conference and reported by Saarland public broadcaster. .
The news comes two weeks after the Biden administration approved Wolfspeed’s $750 million grant request for a semiconductor factory being built in Siler City. The money comes from the CHIPS Act, a federal law aimed at encouraging domestic semiconductor production. But the industry faces global headwinds due to declining demand for computer chips.
