Biden Backs EV Chipmaker, Wolfspeed, With $750m To Boost Silicon Carbide Production
The Biden-Harris administration announced plans on Tuesday to offer Wolfspeed up to $750 million in direct funding to assist its new silicon carbide facility in North Carolina, which produces wafers used in advanced computer circuits, as well as its Marcy, New York factory.
Commerce Secretary Gina Raimondo disclosed the investment plans in a statement.
The plant, to be built in Siler, North Carolina, will assist the US develop a reliable domestic supply of semiconductors during the artificial intelligence boom and future energy economy, according to a statement from the Commerce Department’s National Institute of Standards and Technology.
The funding will assist Wolfspeed’s silicon carbide wafer production at new facilities in North Carolina and Marcy, New York, as part of a larger $6 billion expansion that is expected to create 2,000 manufacturing jobs.
Wolfspeed’s utilisation of silicon carbide makes computer processors for electric vehicles and other sophisticated technologies more efficient.
Wolfspeed CEO, Gregg Lowe, said, “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.”
In addition to the government grant, Wolfspeed will receive an extra $750 million from a consortium of investment groups led by Apollo, The Baupost consortium, Fidelity Management & Research Company, and Capital Group, the company announced.
Wolfspeed also plans to earn $1 billion via an advanced manufacturing tax credit, giving the company access to a total of $2.5 billion.
We earlier reported that the Biden administration is seeking proposals from businesses with the capacity to create and run an organisation that will create semiconductor “digital twins,” with the possibility of receiving funding of up to $285 million.
