North Carolina wins Wolfspeed semiconductor materials plant

Sep 9, 2022, 10:09 AM | Updated: Sep 14, 2022, 1:05 am

RALEIGH, N.C. (AP) — A North Carolina-based semiconductor company announced Friday it will build a $5 billion manufacturing plant in its home state to produce silicon carbide wafers, which is emerging as a favored part for renewable energy products.

Wolfspeed Inc. said it plans to create 1,800 new jobs by the end of 2030 at a location in Chatham County, about 45 miles (72 kilometers) southwest of its Durham headquarters.

Wolfspeed could benefit from $775 million in cash incentives, infrastructure improvements and other sweeteners from North Carolina and local governments and the state legislature to build on the outskirts of Siler City, according to a state document. The lion’s share would be in the form of local property tax rebates.

A state committee voted earlier Friday to award Wolfspeed up to $76 million over 20 years if it met investment and job-creation goals. The company is also likely to benefit financially from legislation signed by President Joe Biden last month that encourages semiconductor research and production.

The company, formerly known as Cree, already employs over 3,000 jobs in the state. The former LED light pioneer has turned to the production of silicon carbine chips, which are known to be more efficient and solid than traditional silicon chips.

“It’s a game-changing technology for electric vehicles, renewable energy, storage, rail systems, appliances … and countless other electric applications,” Wolfspeed CEO Gregg Lowe said at the announcement outside the Executive Mansion in Raleigh.

Lowe said the company already operates the world’s largest silicon carbide materials factory in Durham. Output at the new plant, which Lowe said could begin production in about two years, would be more than 10 times what the Durham plant produces.

The materials produced at the new plant will help supply the company’s new chip fabrication facility in upstate New York, Lowe said.

This “East Coast silicon carbide corridor will dramatically improve the way the world consumes energy,” Lowe said.

Average annual salaries for the new jobs, which would be generated starting in 2026, are projected at $77,753, well above the county average of $41,638, according to state officials.

Gov. Roy Cooper said Wolfspeed’s news was an “historic capital investment” in the state and called Friday “another step in our drive toward a clean energy economy” as well as “an amazing day for high-paying jobs. “

Lowe likened an electric vehicle with silicon chips to a car with a combustion engine whose gas tank is poked full of holes. Meanwhile, he said, a silicon carbide chip within an inverter that converts electricity to turn the vehicle’s motor results in super-fast recharging, he said — 20 minutes to add another 300 miles to his vehicle’s range, for example.

The jobs announcement marked another big economic win for central North Carolina during the past 17 months.

Apple announced plans in April 2021 to build its first East Coast campus in Research Triangle Park between Raleigh and Durham. Toyota revealed in December it would build a battery plant in Randolph County, followed the next month by Boom Supersonic picking Greensboro for its first full-scale manufacturing facility for next-generation supersonic passenger jets.

Chatham County also got the brass ring in March when Vietnamese automaker VinFast said it would build its first North American plant there to make electric vehicles. The investment, which could generate 7,500 jobs, would follow several near-misses by the state to attract a carmaker.

Wolfspeed had considered the expansion in Marcy, New York, where its new production facility is located and where it had additional space for expansion, according to a state Commerce Department document.

Lowe said after the announcement that the company looked at several states, and New York “put together a really strong package.”

But the winning site’s proximity to Wolfspeed’s current operations in Durham, along with the company’s relationship with North Carolina A&T State University in Greensboro, a historically Black college, “gave it a little bit of a tipping edge,” he said. Wolfspeed on Friday also announced expanded initiatives to attract the school’s engineering students to the semiconductor field.

Graduate students at North Carolina State University in Raleigh helped start what is now Wolfspeed in 1987.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of...

Associated Press

Saudi Arabia reducing global oil supply, could spell higher prices for US drivers

Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude.

1 day ago

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

3 days ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

3 days ago

(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

4 days ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

5 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

5 days ago

Sponsored Articles

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Here are the biggest tips to keep your AC bill low this summer

PHOENIX — In Arizona during the summer, having a working air conditioning unit is not just a pleasure, but a necessity. No one wants to walk from their sweltering car just to continue to be hot in their home. As the triple digits hit around the Valley and are here to stay, your AC bill […]

...

re:vitalize

Why drug-free weight loss still matters

Wanting to lose weight is a common goal for many people as they progress throughout life, but choosing between a holistic approach or to take medicine can be a tough decision.

(Desert Institute for Spine Care in Arizona Photo)...

Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.

North Carolina wins Wolfspeed semiconductor materials plant