Wolfspeed Inc sees green tech subsidies in the European Union to attract production of semiconductors important for electric cars as on par with what’s on offer in the US.
(Bloomberg) — Wolfspeed Inc sees green tech subsidies in the European Union to attract production of semiconductors important for electric cars as on par with what’s on offer in the US.
Tax breaks and other incentives under the so-called US Inflation Reduction Act and support in the European Union are both “similar,” according to Wolfspeed Chief Executive Officer Gregg Lowe.
The US chipmaker is currently ramping up a wafer factory for silicon carbide chips in New York state, and is pushing forward with plans to build a $3 billion semiconductor plant in Germany’s Saarland state together with auto supplier ZF Friedrichshafen AG.
“The advantages for us in Germany are the readily available workforce and getting an international manufacturing footprint,” he said Wednesday on the sidelines of an event in Munich. “Our German automotive customers are also excited to have a wafer fab around the corner.”
Industry has hailed US President Joe Biden’s $370 billion plan to support industries cutting carbon emissions as much easier to apply through generous tax breaks, leaving Europe and its cumbersome processes lagging. Northvolt AB, the Swedish battery maker, has delayed a decision to go forward with a plant in Germany to potentially give precedence to a North America expansion plan instead.
For Wolfspeed, the EU’s funding labyrinth is outweighed by good access to a skilled workers in Saarland, Lowe said. The western state is traditionally strong in carmaking with Ford, Robert Bosch and Schaeffler AG among manufacturers.
Wolfspeed plans to start chip production in Germany in 2027, subject to commitments on subsidies amounting to about a quarter of the investment. Lowe expects a go-ahead in the coming months.
Wolfspeed and ZF plan to set up a €300 million ($331 million) research and development center for silicone carbide chips in the Nuremberg region in Bavaria, the companies announced Wednesday.
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