Laurie E. Locascio Director of NIST and the Under Secretary of Commerce for Standards and Technology | Official Website
The Biden-Harris Administration has announced a preliminary memorandum of terms (PMT) with Wolfspeed, Inc. for up to $750 million in proposed funding under the CHIPS and Science Act. This funding aims to support the construction of a silicon carbide wafer manufacturing facility in Siler City, North Carolina. The initiative is part of efforts to secure a domestic supply chain for semiconductors essential for the future energy economy and AI technologies.
U.S. Secretary of Commerce Gina Raimondo stated, "Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century." She added that investments like those proposed for Wolfspeed are pivotal in reigniting U.S. semiconductor manufacturing.
Founded in North Carolina in 1987, Wolfspeed is recognized as a leading manufacturer of silicon carbide wafers and devices. These products are known for their energy efficiency and durability compared to traditional silicon-based semiconductors. They power electric vehicles and renewable energy systems while also serving national security applications.
Laurie Locascio, Under Secretary of Commerce for Standards and Technology, highlighted the importance of building a robust domestic supply chain: “We intend to build a booming semiconductor R&D industry in the United States."
Wolfspeed CEO Gregg Lowe expressed gratitude towards Secretary Raimondo and emphasized how this funding would help solidify their leadership position by establishing significant manufacturing capabilities in New York and North Carolina.
The proposed investment includes constructing the John Palmour Manufacturing Center for silicon carbide in Siler City. Additionally, it involves expanding an existing facility in Marcy, New York. Together these projects could create over 5,000 jobs across both states.
In partnership with local educational institutions such as N.C. A&T State University, Wolfspeed plans to establish training programs aimed at developing skilled workers within the semiconductor sector. Furthermore, they have initiatives planned to address child care challenges faced by employees.
As part of its environmental commitments, Wolfspeed seeks LEED certification at its facilities and plans substantial reductions in operational emissions by 2030.
This PMT is non-binding; final terms may vary after due diligence processes conducted by the Department of Commerce which evaluates potential CHIPS incentives awards based on various milestones achieved by applicants like Wolfspeed.
CHIPS for America has already allocated significant funds across multiple states intending not only economic growth but also revitalizing communities left behind through strategic public-private partnerships aimed at enhancing America's technological capabilities domestically while creating employment opportunities nationwide.
