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ZF and Wolfspeed to build $3B plant to build chips

ZF Friedrichshafen and Wolfspeed plan to build a $3 billion wafer factory in Saarland, Germany to make chips for electric vehicles and other applications, a boon for a region dependent on combustion-engine components, according to people familiar with the matter. ZF will hold a minority share in the factory with its U.S. chipmaking partner, located in Ensdorf near Saarbrücken.

The plan will see the site of a former coal-fired power plant converted into the world’s largest factory for silicon carbide semiconductors, used in EVs and photovoltaic converters.

The move will create hundreds of jobs, the people said, providing relief over concerns for Saarland state’s 40,000 auto industry workers, where many work to make combustion engine parts.

ZF and Wolfspeed hope to get a final decision on subsidies within the next couple of months, the people said.

The partners plan to start production of semiconductors in 2027 and reach full capacity by 2030.

The wafer fab in Saarland will help the EU in its ambitious goal of producing 20 percent of the world’s chips by 2030.
Source: Automotive News

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