The U.S. Department of Commerce and Wolfspeed, a silicone carbide wafers and devices manufacturer, have signed a non-binding preliminary memorandum of terms to invest up to $750 million to boost silicone carbide wafer production.
The DOC said Tuesday the proposed investment, under the CHIPS and Science Act, is intended for the construction of the John Palmour Manufacturing Center, a new 200mm silicone carbide wafer manufacturing facility in Siler City, North Carolina. The new facility is expected to boost the supply of semiconductors and create more than 5,000 manufacturing and construction jobs.
Measuring around two million square feet, the new facility will be the largest of its kind in the United States. It will also be the first high-volume 200mm silicon carbide wafer manufacturing facility in the world.
The proposed CHIPS funding will also be used for Wolfspeed’s $6 billion expansion plan, starting with the company’s Marcy, New York facility. This has the potential to increase the facility’s production by 30 percent.
With the new facility and expansion of the one in New York, Wolfspeed expects a five-fold increase in silicon carbide device production and a ten-fold increase in 200mm materials production.
The current administration, through its Investing in America initiative, has been working on revitalizing the country’s semiconductor supply chain while creating more well-paying job opportunities and investing in future energy and artificial intelligence innovations.
U.S. Secretary of Commerce Gina Raimondo stressed the significance of the investment in advancing technologies such as AI, electric vehicles and clean energy.
“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,” Raimondo expressed.