ZF pulling out of Wolfspeed German fab jv

German auto parts supplier ZF Friedrichshafen is pulling out of its Saarland fab jv with Wolfspeed, reports Handelsbatt, citing weak demand from EV makers.

Wolfspeed had originally planned to build a $3 billion fab to start running silicon in 2027 plus an R&D Centre in Saarland with ZF paying $185 million for a stake in the project. The EU had agreed a €600 million subsidy for the investment.

While not abandoned, the  Saarland plan is now seeking new funding, says Wolfspeed.


ZF pulling out of Wolfspeed German fab jv

In June, Wolfspeed put back the start of construction until mid-2025 at the earliest, saying it was prioritising its investment in its Marcy, New York fab.


Wolfspeed was awarded $750 million under the US Chips Act and gets 25% tax relief on the cost of building a SiC fab in Siler City, North Carolina and expanding its SiC fab in Marcy, New York – together budgeted at $6 billion.

The 2-million-square-foot Siler City facility would become the US’ largest SiC fab and the world’s first high-volume 200mm silicon carbide wafer manufacturing facility.

The expansion if the Marcy, New York facility – claimed to be the world’s first fully automated 200mm SiC power device fab – will increase its production capacity by approximately 30%.

Due in part to the Siler City and Marcy projects, Wolfspeed anticipates a five-fold increase in their SiC device output and a ten-fold increase in 200mm materials production capacity.

David Manners

David Manners

David Manners has more than forty-years experience writing about the electronics industry, its major trends and leading players. As well as writing business, components and research news, he is the author of the site's most popular blog, Mannerisms. This features series of posts such as Fables, Markets, Shenanigans, and Memory Lanes, across a wide range of topics.

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