Another delay for chip factory planned in Germany
The US company Wolfspeed is postponing its construction plans in Saarland. Intel previously reported delays for Magdeburg.
The SiC plant is actually to be built on the site of a former coal-fired power plant in Ensdorf, Saarland
(Image: ZF / Wolfspeed)
The EU wants to boost the production of semiconductor components in Europe with high subsidies. However, some projects are being delayed, including that of Wolfspeed in Saarland. The US company specializes in power semiconductors made of silicon carbide (SiC), which are important for growth industries such as photovoltaics, e-bikes, e-cars and high-voltage grids.
In February 2023, Wolfspeed announced plans to build a chip fab in Germany costing around EUR 2 billion, together with automotive supplier ZF, on the site of a former coal-fired power plant in Ensdorf directly on the Saar. At the time, it was said that work on the project would start in the first half of 2023. Reuters is now reporting, without naming a source, that Wolfspeed will not be building in Saarland until 2025 at the earliest. This delays the project by around two years. However, it was already announced in February that construction in Ensdorf would not start until 2025.
The much larger and more expensive fab planned by Intel in Magdeburg is likely to be delayed by several months. Intel originally wanted to start construction in 2024 so that Fabs 29.1 and 29.2 would be up and running by the end of 2027. However, as the Volksstimme and Tagesschau.de reported at the end of May, approvals are still missing, which is why tenders have been delayed. Intel even put a major fab project in Israel on ice.
Uncertainty and competition
Wolfspeed is pressured from investor JANA Partners, which demanded a strategy for higher shareholder value in April, as also reported by Reuters. In a letter to Wolfspeed's Board of Directors, JANA also called for a review of the planned investments in Saarland.
Sales figures for e-cars are currently falling short of expectations. At the same time, competition for SiC semiconductors is growing.
Among others, the major European chip manufacturers Infineon, Bosch and STMicroelectronics, which sell many chips for cars (automotive sector), are building up large SiC capacities. At the end of May, STMicroelectronics announced the expansion of its Catania (Sicily) site to include a SiC fab, which is to receive around EUR 5 billion over several years, including EUR 2 billion from the Italian government. And just yesterday, the US company Onsemi also announced the construction of a USD 2 billion SiC fab in the Czech Republic, near Zlin in Moravia. Vishay Siliconix also wants to produce SiC chips in the new fab in Itzehoe.
(ciw)
