Chipmaker Wolfspeed Weighs Domestic Chip Factory Worth Over $2B: Report

Author: Anusuya Lahiri | January 23, 2023 11:37am

• U.S. power chip maker Wolfspeed, Inc (NYSE:WOLF) eyed a factory in Germany worth over €2 billion ($2.17 billion).
• The German auto supplier ZF will hold a minority stake, Reuters reports citing a newspaper.
• Production will likely begin in four years at the site in the small southwest German state of Saarland.
• Also Read: US Chips Act Draws Investments; Wolfspeed To Build New US Factory To Tap Ballooning EV Demand
• In 2022, Intel Corp (NASDAQ:INTC) named Magdeburg, Germany, as the site for its new mega chip manufacturing complex.
• Intel aimed to build a chip factory in the country as part of a broader plan to invest up to €80 billion ($85.15 billion) over the next decade in building capacity across Europe.
• German chipmaker Infineon Technologies AG (OTC: IFNNF) (OTC:IFNNY) eyed several billion euros on the right takeover target as it hunted for acquisitions.
• Infineon saw growth in electromobility, autonomous driving, renewable energy, data centers, and the so-called internet of things, which help connect items like appliances, factory equipment, and health monitors to the internet or other communications networks.
• The quest for domestic chip production gained traction since the pandemic disrupted global supply chains worsening the semiconductor crisis.
• Countries started boosting their semiconductor technology position to reduce dependence on China and other Asian countries. The governments began doling out subsidies to encourage the domestic production of semiconductor chips.
• Price Action: WOLF shares traded higher by 3.23% at $82.50 on the last check Monday.
• Photo Via Company

Posted In: IFNNY INTC WOLF