Wolfspeed said the facility will be the world’s largest 200mm semiconductor plant, using innovative manufacturing processes to produce next-generation silicon carbide devices.

The Wolfspeed plant is planned as part of the cooperation in the framework of the European Major Projects of Common Interest in Microelectronics and Communication Technologies, the implementation of which is subject to the approval of the European Commission’s state aid rules. The “Major Project of European Common Interest” funds will be used to support the technology development and early deployment of the project.

ZF will also enter into a strategic partnership with Wolfspeed to provide investment to support the construction of the new plant.

According to Wolfspeed, the European plant will be an important part of the company’s $6.5 billion (currently about 43.81 billion yuan) capacity expansion plan, along with the 200mm Mohawk Valley Device Plant and the John Palmour Silicon Carbide Manufacturing Center.

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The plant is reportedly expected to be operational within four years and is expected to be the world’s largest silicon carbide semiconductor plant. It is worth noting that German supplier ZF will take a minority stake in the plant.

A spokesman for the Saarland Ministry of Economic Affairs declined to comment at this time, and Wolfspeed did not immediately respond to requests for comment outside of normal working hours. ZF declined to comment.

According to publicly available information, Wolfspeed, founded in 1987 and formerly known as Cree Technologies (Cree), changed its name in October 2021 and is a major US LED manufacturer based in Durham, North Carolina. The company’s silicon carbide chips have a clear advantage in the electric and hybrid vehicle market and may gradually replace conventional chips in the coming years.

Wolfspeed is already a global leader in silicon carbide and gallium nitride technology and is now the world’s largest manufacturer of silicon carbide substrates, with a product portfolio that includes silicon carbide materials, power-switching devices and RF devices for a variety of applications such as electric vehicles, fast charging, 5G, renewable energy and storage, as well as aerospace and defense.

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