Chipmaker Wolfspeed yesterday announced plans to invest $3 billion in a semiconductor factory in the western German state of Saarland. The factory, which will be the largest and most advanced of its kind in the world, will make chips for electric vehicles, Wolfspeed said.

The facility will produce 200mm silicon carbide chips, a type that has emerged over the past few years to challenge the dominance of traditional silicon transistors, especially in the automotive market.

Wolfspeed CEO Gregg Lowe commented that silicon carbide devices offer greater energy efficiency and are critical to the global shift to sustainable electrification. This new facility is critical to supporting our expansion in a very rapidly growing capacity-constrained industry, especially across the electric vehicle market. It is important for us to have a facility in the heart of Europe, close to our many customers and partners, to facilitate collaboration on next-generation silicon carbide technology.

According to industry reports, there is an ongoing race among chipmakers for market share in new areas. To that end, Wolfspeed is pursuing a $6.5 billion expansion plan. It opened a plant in New York state's Mohawk Valley in April and has begun construction of the 180-hectare John Palmer silicon carbide manufacturing center in its home state of North Carolina.

Also in attendance was Stefan von Schuckmann, director of auto parts maker ZF. ZF will make a significant financial investment in the plant as part of its strategic partnership with Wolfspeed. In the future, the two companies will cooperate in a research and development center in Germany. According to Wolfspeed, the Saarland factory will feature innovative sustainability measures, including a high proportion of recycled water and a reduced emissions footprint, which will serve as a model for more sustainable factories in the future.Editor/XingWentao