Wolfspeed Secures $2.5 Billion to Expand Silicon Carbide Production for EVs and Clean Energy

Wolfspeed, a leading US semiconductor manufacturer, has secured $2.5 billion in funding to scale up production of silicon carbide (SiC), a critical material for electric vehicles (EVs) and clean energy technologies. The funding will support two major expansion projects aimed at increasing Wolfspeed’s SiC manufacturing capabilities and reinforcing its leadership in the fast-growing market.

Strategic Funding to Boost SiC Manufacturing Capacity
The $2.5 billion funding includes a combination of:

• $750 million from the US Commerce Department under the Chips and Science Act.
• Another $750 million from a consortium of investment funds.
• $1 billion in cash rebates available through the advanced manufacturing tax credit from the Chips Act, covering up to 25% of eligible capital expenditures.
  This funding will enable Wolfspeed to build a new SiC wafer manufacturing facility in Siler City, North Carolina, and expand its SiC power device plant in Marcy, New York, by 30%. The expanded footprint will make Wolfspeed the world’s largest producer of 200mm SiC wafers, positioning the company to meet the growing global demand for SiC materials used in EVs, industrial applications, and clean energy solutions.

SiC’s Role in the EV and Clean Energy Sectors
Silicon carbide is essential for the next generation of electric vehicles, offering superior efficiency, thermal management, and performance in power conversion systems like inverters, chargers, and electric drivetrains. As the demand for EVs continues to surge, the need for high-performance SiC components is growing rapidly. Wolfspeed’s expanded manufacturing capacity will directly support the EV revolution, providing the critical materials needed for cleaner, more efficient transportation.

In addition to the EV sector, SiC is also a key enabler for clean energy technologies, including solar, wind, and energy storage, where its high efficiency and durability are crucial in power electronics and energy conversion systems.

Strengthening Domestic Semiconductor Production
This expansion is part of a broader effort to boost US semiconductor manufacturing under the Chips and Science Act, which seeks to reduce reliance on foreign suppliers and strengthen the country’s competitive edge in high-tech industries. Wolfspeed’s investment aligns with US government goals to ensure domestic leadership in semiconductor production and advanced manufacturing.

By leveraging public-private partnerships and expanding its SiC manufacturing capacity, Wolfspeed is well-positioned to support advancements in clean energy and electric vehicles, while contributing to the US semiconductor ecosystem and driving the transition to a more sustainable future.