Wolfspeed, an American manufacturer of silicon carbide wafers and chips, is poised to secure $750 million in funding from the U.S. government. This week, a non-binding preliminary memorandum of terms was signed, marking significant progress in enhancing the nation's semiconductor industry under the CHIPS & Science Act

Largest Silicon Carbide Wafer Manufacturing Facility

With this substantial funding—and an additional $750 million from private investors—Wolfspeed plans to establish the new 2-million-square-foot John Palmour Manufacturing Center in Siler City, NC. This facility will be equipped with advanced machinery, allowing for the production of five times more silicon carbide wafers and ten times the output of 200 mm materials.

Wolfspeed targets three primary sectors for these semiconductors and related components: automotive, energy, and industrial. This diversification aligns with the Biden-Harris administration’s priorities, particularly as demand for batteries in electric vehicles, renewable energy systems, and other technologies continues to grow.

Investment in Existing Facilities, Production, and Employee Support

Headquartered in North Carolina, Wolfspeed also operates facilities in Marcy, NY. The investment will not only contribute to the development of the new manufacturing center but will also enhance production capabilities at its other locations.

Moreover, Wolfspeed intends to focus on employee well-being by increasing childcare availability and hours, launching new in-home support programs, and offering flexible spending accounts (FSAs) for employees with dependents to alleviate financial burdens.

CHIPS and Science Act

Wolfspeed’s upcoming investment is made possible through the CHIPS and Science Act, which aims to bolster semiconductor production and research while supporting the STEM workforce. Signed into law in 2022, this initiative has been a key project for the U.S. Department of Commerce.

As of October, the CHIPS Program Office reported over $32.6 billion in available grants and $28.8 billion in loans.

The Importance of Silicon Carbide Wafers

This latest investment in the semiconductor industry underscores the significance of these components for the U.S. economy and the promotion of domestic chip and parts production essential for electric vehicles, computers, and green energy solutions. Once Wolfspeed’s application is fully reviewed, the preliminary memorandum can transition into a formal contract and funding agreement.