News: Microelectronics
24 October 2024
ZF said to be withdrawing from Wolfspeed’s German silicon carbide device fab project
Germany-based ZF Friedrichshafen AG (one of the world’s largest suppliers to the automotive industry) intends to withdraw from the projected $3bn silicon carbide (SiC) device fabrication plant and R&D center in Ensdorf, Saarland, Germany that Wolfspeed Inc of Durham, NC, USA plans to build (as announced in February 2023), reports Reuters. ZF had been set to contribute $185m for a stake in the plant, which was to make SiC devices for electric vehicles (EVs).
The rethink follows Wolfspeed’s decision to put the project on hold because of weaker-than-expected semiconductor demand and doubts about whether its entry into the European market would be worthwhile, the report adds.
ZF refutes media reports that it was responsible for delaying the project, adding: “Wolfspeed is responsible for the project. ZF has always provided intensive and active support”.
Reuters reported last June that Wolfspeed had delayed its plans, with funding still being sought and construction not set to start until mid-2025 at the earliest. The plant was not scrapped entirely, a Wolfspeed spokesperson said at the time, adding that the company was focused on ramping up production of its Mohawk Valley Fab in New York State after spending cuts in response to weakness in the European and US EV markets.
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