Wolfspeed Expands into Europe With New SiC Fab and Lab

The new facility will be the company’s first manufacturing facility in Europe and it is also set to be its most advanced fab. Designed for innovation in SiC development and production, the fab is intended to be part of a collaboration within the EU’s IPCEI for Microelectronics and Communication Technologies framework, and its construction will be dependent upon state aid approval from the European Commission. In addition to the IPCEI funding, ZF Friedrichshafen will also support the new construction by making a sizeable financial investment as part of a new strategic partnership.

The new fab is part of the company’s $6.5 billion capacity expansion effort, which includes the opening of a 200mm device fab in Mohawk Valley in April 2022, and the construction of The John Palmour Manufacturing Center for Silicon Carbide, a 445-acre SiC materials facility in North Carolina, which will expand the company’s existing materials capacity by more than 10x. The first phase of construction for the materials facility should be complete by the end of FY2024.

The planned fab will be situated on the 35-acre (14-hectare) site of a former coal-fired power plant in Ensdorf, Saarland, Germany. It will be designed to use groundbreaking manufacturing processes to produce future generations of SiC devices. As well as using the latest technology, the fab will also incorporate innovative sustainability measures, including a high percentage of recycled water and a reduced emission footprint. It will employ more than 600 people when fully operational. Fab construction is anticipated to begin in the first half of 2023, subject to approval by the EU Commission.

Gregg Lowe, President and CEO of Wolfspeed said, “Silicon Carbide devices are essential in the global shift toward sustainable electrification. This new facility will be crucial to supporting our expansion in a capacity constrained industry that is growing very rapidly, especially across the EV marketplace. It was important for us to have a facility located in the heart of Europe, near many of our customers and partners.”

Wolfspeed has also formed a strategic partnership with ZF that includes an investment in Wolfspeed as well as the constructions of a joint Silicon Carbide R&D facility in Germany, which is part of the same IPCEI framework. The joint innovation lab will drive advances in SiC systems with a focus on real world e-mobility and renewable energy system level challenges. The goal of the collaboration is to develop breakthrough innovations for SiC systems, products, and applications, covering the full value chain from chip to complete systems. Additional collaboration partners will be invited to participate in the innovation process, establishing an end-to-end, European SiC innovation network.

“Together, Wolfspeed and ZF combine expertise in power electronics and systems with a know-how in applications that is unparalleled. Wolfspeed brings its more than 35 years in Silicon Carbide technology, and at ZF we have a unique understanding of the overall systems across all sectors - from passenger cars and commercial vehicles to construction machinery, wind power and industrial applications. The close cooperation between fab and R&D center will enable us to develop breakthrough innovations beyond state of the art for the benefit of our customers,” says Stephan von Schuckmann, Member of the ZF Board of Management.