New York Construction Report staff writer
Semiconductor producer Wolfspeed has signed a $750 million non-binding preliminary memorandum of terms with the U.S. Dept. of Commerce to build a plant in North Carolina and expand a site in Now York, officials and the company announced Oct. 15.
Funding comes from CHIPS and Science Act, which includes $39 billion to support construction, expansion and modernization of semiconductor chip fabrication plants and their suppliers.
Also, the company has reached an agreement for another $750 million in new financing from a group of investment funds, and that it expects to receive $1 billion in cash tax refunds from the CHIPS Act’s advanced manufacturing tax credit, giving it a total $2.5 billion more to invest in the projects.
“To reach this milestone under the U.S. CHIPS and Science Act is an incredible achievement in Wolfspeed’s long-term growth strategy, and we believe today’s announcement is a testament to the market-leading quality of Wolfspeed products and significance of Wolfspeed to broader U.S. economic and national security interests,” said Wolfspeed CEO Gregg Lowe. “This support galvanizes our ability to expand domestic manufacturing, accelerate innovation in next-generation semiconductor technology, and meet the increasing global demand for silicon carbide.
“As a key player in the semiconductor industry, this proposed investment will enable us to solidify our leadership position with a first-of-its-kind 200mm silicon carbide manufacturing footprint in upstate New York and central North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain.
Wolfspeed is the world’s largest producer of silicon carbide technology, pioneering the technology more than 35 years ago on the campus of North Carolina State University. Since that time, Wolfspeed says it has become the global leader in silicon carbide technology, one of the fastest growing components of the broader semiconductor industry.
