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Stalled E-Mobility: Wolfspeed postpones SiC chip factory indefinitely

(dpa/lrs) In early 2023, the construction of the world's largest factory for silicon carbide semiconductors was announced in Saarland. Now the US company Wolfspeed is delaying the co-project with ZF: E-mobility did not develop as planned. With SiC chips, electric cars can charge faster.

For now, the dream is over: The SiC factory in Saarland is being postponed indefinitely - because e-mobility is not ramping up quickly enough, it is said. | Photo: ZF/Wolfspeed
For now, the dream is over: The SiC factory in Saarland is being postponed indefinitely - because e-mobility is not ramping up quickly enough, it is said. | Photo: ZF/Wolfspeed
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The US company Wolfspeed is postponing the construction of a chip factory planned in Saarland indefinitely. This was announced by Saarland's Minister President Anke Rehlinger (SPD) in Saarbrücken. "The project is thus not shelved, but it has been pushed further back on the timeline to an indefinite point, primarily depending on the evolving market situation." However, Wolfspeed remains committed to the location in Ensdorf, said Rehlinger.

The "uncertainties that have now arisen around the investment at Wolfspeed" are "a setback for Saarland" and also "a setback for the structural change in Saarland". It highlights the challenging market situation for e-mobility in Germany and Europe.

"We are experiencing the automotive industry in rough waters with a really profound uncertainty regarding the market situation," said Rehlinger. There is a similar situation with the chip factories. "They, after all, depend heavily on the automotive sector and e-mobility with their products."

600 Jobs Planned

The construction of the planned chip factory by the US company Wolfspeed had recently been delayed. In June of this year, it was reported that construction on the site of a former coal power plant was not expected to begin until 2025. In 2023, Wolfspeed had still stated that they wanted to start as soon as possible. According to earlier reports, investments of around 2.7 billion euros and at least 600 jobs are planned. 

The US corporation stated when presenting the plans in early 2023 in Ensdorf that the plant is intended to become the world’s largest factory for silicon carbide semiconductors. With semiconductors, electric cars can charge faster and travel further. However, it was now being reported from sources that the e-mobility market had developed differently than planned. “We had hoped for more.”

Translated automatically from German.
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