Wolfspeed Inc., a US-based chipmaker, believes that green-tech subsidies offered by the European Union are on par with those provided in the US to attract production of semiconductors that are important for electric cars.
US Chipmaker Wolfspeed Finds EU Green Subsidies Equally Attractive for Electric Car Semiconductors

According to Wolfspeed's CEO Gregg Lowe, tax breaks and incentives under the US Inflation Reduction Act are similar to the support given in the EU

Wolfspeed is currently constructing a wafer factory for silicon-carbide chips in New York and plans to build a $3 billion semiconductor plant in Saarland, Germany, with auto supplier ZF Friedrichshafen AG. Lowe said that the advantages of operating in Germany include readily available skilled workers and an international manufacturing footprint. Additionally, German automotive customers are excited about having a wafer fab nearby.

While executives have praised US President Joe Biden's $370 billion plan to support industries reducing carbon emissions, it has been considered easier to access compared to the EU's cumbersome processes, leaving Europe behind. However, for Wolfspeed, the EU's funding labyrinth is outweighed by access to a skilled workforce in Saarland.

Wolfspeed plans to begin chip production in Germany in 2027, subject to commitments on subsidies amounting to about a quarter of the investment. Lowe expects approval in the coming months. Wolfspeed and ZF also plan to establish a $331 million research and development center for silicone-carbide chips in Bavaria.

Source: Bloomberg

May 4, 2023, 4:53 p.m.
Евгений Ушаков
Evgenii Ushakov
15 years driving