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$5B! Wolfspeed's 8" SiC Factory Tops Off

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$5B! Wolfspeed's 8" SiC Factory Tops Off

Recent developments reveal that Wolfspeed has successfully concluded its investment of $5 billion in an 8-inch Silicon Carbide (SiC) manufacturing facility, equivalent to approximately 36.1 billion RMB. Named in honor of the late co-founder John Palmour, the "John Palmour Silicon Carbide Manufacturing Center" is poised to produce 200mm SiC wafers, a pivotal expansion that addresses the burgeoning demand for next-generation semiconductors vital for energy transition and AI advancement.

Backed by a coalition of public and private stakeholders, this facility signals a pivotal stride in transitioning from silicon to silicon carbide, bolstering the availability of critical materials essential for energy transition initiatives. Encompassing 445 acres, the initial phase of construction for the "John Palmour Silicon Carbide Manufacturing Center" is slated for completion by late 2024.

WOLFSPEED reports that the ramp-up of operations at the "John Palmour Silicon Carbide Manufacturing Center" will not only facilitate recent customer agreements with key players like Renesas and Infineon but also propel significant advancements in realizing Wolfspeed's enduring growth strategy. Central to its operations will be the production of 200mm SiC wafers, boasting a size 1.7 times larger than traditional 150mm wafers, thereby ensuring enhanced efficiency and cost-effectiveness. This initiative fortifies Wolfspeed's commitment to accelerating the widespread adoption of silicon carbide semiconductors across diverse market segments, heralding a transformative era of energy efficiency and technological innovation.

Of note, Wolfspeed currently commands the production of over 60% of the world's silicon carbide materials from its headquarters in Durham, North Carolina. Moreover, the company is actively pursuing a $6.5 billion capacity expansion initiative aimed at significantly augmenting its manufacturing capabilities.


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