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Wolfspeed shelves plans to build chip factory in Germany
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(Reuters) -Wolfspeed has shelved plans to build a semiconductor factory in Ensdorf, Germany, due to slower
(Reuters) -Wolfspeed has shelved plans to build a semiconductor factory in Ensdorf, Germany, due to slower electric vehicle adoption, the U.S. chipmaker said on Wednesday.
The chipmaker said in June it had delayed plans to build the $3 billion plant, which would make, in Germany, computer chips used in electric cars, highlighting the European Union’s struggle to increase semiconductor production and reduce its reliance on Asian chips.
The demand for silicon carbide chips that were to be produced in the factory is largely driven by the global EV adoption, and it is also used in industrial and energy applications.
Wolfspeed announced its plans for the plant and a research and development center in Germany in February 2023. The move represents another setback for German efforts to sell the country as an attractive location for business.
An industry source told Reuters on Tuesday that the German automotive supplier ZF had intentions to withdraw from the planned $3 billion microchip manufacturing project with Wolfspeed in western Germany.
The Financial Times first reported the news.
($1 = 0.9283 euros)
(Reporting by Priyanka.G in Bengaluru and Murray Miranda in Berlin; Editing by Alan Barona)
Electric vehicle adoption refers to the increasing acceptance and use of electric vehicles (EVs) by consumers and businesses. This shift is driven by environmental concerns and advancements in EV technology.
Silicon carbide chips are semiconductor devices made from silicon carbide material, known for their efficiency in high-temperature and high-voltage applications, particularly in electric vehicles and energy systems.
A chip factory is a manufacturing facility where semiconductor chips are produced. These chips are essential components in various electronic devices, including computers, smartphones, and electric vehicles.
The European Union's semiconductor strategy aims to increase local semiconductor production to reduce reliance on imports, particularly from Asia, and to enhance technological sovereignty in the digital economy.
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