On October 15, the Biden-Harris Administration announced that Wolfspeed Inc., a leading producer of silicon carbide wafers, has entered into an agreement with the U.S. Department of Commerce to receive up to $750 million in funding from the CHIPS and Science Act. This funding will support the construction of a new semiconductor manufacturing facility in Siler City, North Carolina, aimed at bolstering the domestic supply of semiconductors essential for the growing demand in artificial intelligence (AI) and clean energy technologies.

The funding is part of the Biden-Harris Administration’s broader initiative to boost semiconductor manufacturing in the U.S., enhancing national security and revitalizing domestic supply chains. Commerce Secretary Gina Raimondo emphasized the importance of Wolfspeed’s role in supporting technologies like AI, electric vehicles (EVs), and renewable energy, which will shape the future economy.

Founded in North Carolina in 1987, Wolfspeed specializes in silicon carbide wafers that power various high-tech applications, including EVs, AI, renewable energy systems, and national security. Its products are known for improving energy efficiency, extending driving range, and reducing overall system costs. The company’s silicon carbide devices sold in 2023 are expected to save 72 million metric tons of CO2 over their lifetimes.

Wolfspeed’s new Siler City facility will be the world’s first high-volume 200mm silicon carbide wafer plant and the largest in the U.S., covering 2 million square feet. The facility, along with the planned expansion of its Marcy, New York, device manufacturing plant, is expected to create over 5,000 jobs, including 2,000 in manufacturing and 3,000 in construction. These projects are part of Wolfspeed’s $6 billion capacity expansion plan, aimed at increasing silicon carbide device output fivefold and boosting production capacity of 200mm materials tenfold.

In addition to its technological advancements, Wolfspeed is committed to community partnerships. In North Carolina, the company has teamed up with North Carolina Agricultural and Technical State University (N.C. A&T) to establish a $4 million Wolfspeed Endowed Scholars Program. This initiative aims to create specialized training programs for silicon carbide manufacturing workers. In New York, Wolfspeed is working with local organizations to recruit women and veterans into the semiconductor workforce.

Wolfspeed also plans to address child care challenges for its employees in both North Carolina and New York by providing financial support for local child care providers and creating new licensed in-home care programs.

The company has received Silver Leadership in Energy and Environmental Design (LEED) certification in New York and is pursuing similar certification for the new Siler City facility, as part of its goal to reduce operational emissions by 50% by 2030.

This funding underlines Wolfspeed’s critical role in advancing the U.S. semiconductor industry, strengthening supply chains, and driving the future of AI, EVs, and clean energy.