The Biden administration is providing $750 million to U.S. semiconductor manufacturer Wolfspeed, to support a new silicon carbide computer chip factory in North Carolina.
Wolfspeed bills itself as the world's leading manufacturer for chips made from silicon carbide, a material that makes semiconductors more energy-efficient and durable than ones made with traditional silicon. The company primarily makes chips for electric vehicles and plug-in hybrids, and estimates that its products sold in 2023 will save a combined 72 million metric tons of carbon emissions over their lifetimes.
A portion of the funds from the Biden administration will go toward the construction of Wolfspeed's planned two-million-square-foot silicon carbide facility in Siler City, North Carolina. The remaining money will be used to expand the company's manufacturing facility in Marcy, New York, to boost its production capacity by roughly 30%. Between the two projects, Wolfspeed expects to see a five-fold increase in the output of its silicon carbide device.
“We intend to build a booming semiconductor R&D industry in the United States that will attract and keep semiconductor manufacturers in this country,” U.S. commerce under-secretary Laurie Locascio said in an October 15 news release. "These efforts depend on a reliable domestic supply of specialized semiconductor wafers and devices, such as those produced by firms like Wolfspeed."
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