Wolfspeed and ZF to build SiC fab in Germany

US SiC chip maker Wolfspeed and German automotive giant ZF Friedrichshafen plan to build a $3 billion wafer factory in Germany to make chips for EVs and other applications, according to recent reports in the German business newspaper Handelsblatt.

Production should begin in four years at the site in the southwest German state of Saarland, the report added.

Wolfspeed CEO Gregg Lowe said last year that the company was considering building a semiconductor factory in Germany, and that an investment decision would depend on the subsidies it received.

ZF and Wolfspeed already have an ongoing strategic partnership to create electric drivelines which was announced in November 2019.

ZF ranks has sales to automakers of $33.4 billion in 2020. It is a worldwide supplier of driveline and chassis technology for cars and commercial vehicles, along with specialist plant equipment such as construction equipment. It is also involved in rail, marine, defence and aviation industries, as well as general industrial applications.