Fuelling tech innovation in North Carolina and New York, American chipmaker Wolfspeed lands $750 million to build a major semiconductor fab, creating 5,000 jobs.
On Tuesday, the United States Commerce Department announced that Wolfspeed will receive $750 million in funding through the CHIPS and Science Act to assist in constructing a semiconductor fabrication plant in North Carolina and expanding its facility in New York.
Wolfspeed will build a new 2 million-square-foot (about 185,806 square meters) silicon carbide wafer plant in Siler City, North Carolina, and expand its facility in Marcy, New York. These projects will boost its 200mm device and wafer production and are expected to create over 5,000 jobs. They are part of the company’s plan to invest more than $6 billion in capacity expansion.
Additionally, Wolfspeed has secured $750 million from an investment consortium led by Apollo, the Baupost Group, Fidelity Management and Research Company, and the Capital Group, as reported disclosed by the company.
According to the Commerce Department, Wolfspeed’s semiconductors are utilised in electric vehicles, plug-in hybrids, renewable energy systems, industrial applications, and AI technologies. Furthermore, the funding for the New York facility will boost its production capacity by about 30%.
“Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies,” noted the U.S. Secretary of Commerce Gina Raimondo.
Besides, Wolfspeed is presently working with organisations to recruit more women and military veterans and has launched a registered apprenticeship programme. It is partnering with North Carolina Agricultural and Technical State University to create manufacturing credentials and training for SiC production.
The company is also providing financial support to improve childcare services and offering employees a stipend and a Dependent Care Flexible Spending Account. Wolfspeed will discuss these initiatives in its upcoming earnings call, following the recent closure of an older wafer production facility in Durham, North Carolina.
Meanwhile, North Carolina remains a key technology hub, with VinFast starting production at its first North American plant, which is contracted to receive chips from Wolfspeed.
