North Carolina Wolfspeed Materials Efficient Silicon Carbide Facility

Durham, North Carolina-based company Wolfspeed will invest about $5 billion to build a new facility to make wafers with silicon carbide. The new plant is expected to provide 1,800 people with jobs with an average annual salary of $77,753. The facility will be the largest economic development project in North Carolina to date and the largest plant in the world using silicon carbide to help create silicon semiconductor chips.

Historical context

• Wolfspeed is local to North Carolina: Founded and currently headquartered in Durham, Wolfspeed is the global leader in silicon carbide technology used in electric vehicles (EVs), 5G networks, and renewable energy and storage. – Wolfspeed, September 9, 2022
  • Expansion at the Chatham-Siler City Advanced Manufacturing Site “will produce the Silicon Carbide materials to make semiconductor chips and devices that more efficiently power electric vehicle inverters and charging systems.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
  • “Wolfspeed will transform that market, not only thanks to NC State-founded technology, but with the help of the University of North Carolina System’s two biggest land-grant institutions, NC State and North Carolina A&T in Greensboro.” – North Carolina State University, October 19, 2022
• This is the largest economic development investment in the state’s history: A $5 billion investment bringing 1,800 new jobs with an average annual wage of $77,753—the largest economic development project in North Carolina history. – Chapelboro.com, September 9, 2022
• The plant will lead the global economy: This plant is expected to be the largest plant in the world using silicon carbide to help make chips. – Business North Carolina, September 9, 2022

Project summary

• The facility will produce larger silicon wafers for lower device cost:
  • “The facility will primarily produce 200mm Silicon Carbide wafers, which are 1.7x larger than 150mm wafers, translating into more chips per wafer and ultimately, lower device costs. These wafers will be used to supply Wolfspeed’s Mohawk Valley Fab, which opened earlier this year as the world’s first, largest and only fully automated 200mm Silicon Carbide fabrication facility.” – Wolfspeed, September 9, 2022
• The project is partially facilitated by North Carolina state and local investment:
  • North Carolina’s Commerce Department approved a Job Development Investment Grant (JDIG) worth $76 million to Wolfspeed if it hires 1,800 workers by 2030. – Axios Raleigh, September 9, 2022
  • “The JDIG agreement authorizes the potential reimbursement to the company of up to $76.1 million, paid over a time period of 20 years. … Any state payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets … [as well as] moving as much as $10 million into the state’s Industrial Development Fund – Utility Account. The Utility account helps rural communities anywhere in the state finance necessary infrastructure upgrades to attract future business.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
  • Another $57.5 million was approved by the Department of Commerce to be used as support for final site preparations at the Chatham-Siler City Advanced Manufacturing Site. – Office of North Carolina Gov. Roy Cooper, September 9, 2022
  • “Wolfspeed could benefit from $775 million in cash incentives, infrastructure improvements and other sweeteners from North Carolina and local governments and the state legislature.” – The Hill, September 9, 2022
  • “The company could also receive more than $600 million from Chatham County and Siler City.” – Axios Raleigh, September 9, 2022
• This is made possible by funding from the CHIPS and Science Act: Wolfspeed is hoping “to apply for and obtain federal funding from the CHIPS and Science Act to accelerate the construction and build-out of the facility.” – Wolfspeed, September 9, 2022
• The facility is on schedule to begin producing material in the second half of 2024:
  • “‘Named after the company’s late cofounder, the John Palmour Manufacturing Center for Silicon Carbide is on schedule to begin producing material in the second half of next year,’ said Wolfspeed CEO Gregg Lowe. By the end of the decade, the Durham-based Wolfspeed has pledged to create just over 1,800 jobs at the western Chatham County site. ‘We’ve already hired and begun training more than 100 people that will work at that facility,’ Lowe said.” – The News Observer, October 31, 2023
  • The first phase of the factory is projected to complete in 2024, while the second phase is projected to be completed in 2030 and could push the facility to 1 million square feet. – Axios Raleigh, September 9, 2022

Outcomes, improvements, and practical impact 

• Increasing domestic production of silicon carbide materials:
  • Silicon carbide materials are used “to make semiconductor chips and devices that more efficiently power electric vehicle inverters and charging systems.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
  • The new facility in Chatham County is estimated to produce 10 times more than the current manufacturing hub in Durham, which already produces 60 percent of the world’s silicon carbide, cornering the market in North Carolina. – Wolfspeed and the White House, September 9, 2022

Climate impact

• The facility will generate greater access to green technology:
  • Increased production of silicon carbide materials will supply Wolfspeed’s new chip fabrication facility in upstate New York, creating an “East Coast silicon carbide corridor” and “dramatically improving the way that the world consumes energy.” – WCNC, September 12, 2022
  • Wolfspeed CEO Gregg Lowe: “It’s a game-changing technology for electric vehicles, renewable energy, storage, rail systems, appliances … and countless other electric applications.” – WCNC, September 12, 2022
• Silicon carbide chips are touted as being more efficient than other chips. “Wolfspeed chips are used to power appliances like electric vehicles and energy storage equipment. Unlike standard silicon chips, the company manufactures a distinct chip made from silicon carbide, which Wolfspeed touts as being more efficient. First, Wolfspeeed grows its own silicon carbide crystals. The Siler City site will begin to cultivate crystals in the second half of 2024, said Wolfspeed chief financial officer Neill Reynolds. The company then converts these crystals into blank wafers. Wolfspeed currently makes wafers on its main campus near Research Triangle Park in Durham, but Lowe said the John Palmour facility (known internally as ‘the JP’ will be ‘a substantially larger facility’ than the Durham site. Finally, Wolfspeed sends these blank wafers to a fabrication facility in Upstate New York’s Mohawk Valley where they are made into functioning chips. Wolfspeed also supplies wafers to other chipmakers.” – The News Observer, October 31, 2023
• The chips could reduce the charging time for EVs, extend their range, and make them more efficient.“SiC holds great promise for a number of automotive applications, particularly for battery electric vehicles. It can extend driving range per charge compared with silicon, reduce the time it takes to charge a battery, and contribute to the overall efficiency equation by providing the same range with lower battery capacity and less weight.” – Semiconductor Engineering, September 20, 2021

Racial equity and justice impact

• Wolfspeed has an established workforce training partnership with the historically black college and university North Carolina Agriculture and Technical State University (NC A&T):
  • “The company’s talent development strategy is complemented by its continued partnership with North Carolina Agricultural and Technical State University (N.C. A&T). In 2020, Wolfspeed committed $4 million over five years to the HBCU – at the time, the single largest donation in the university’s history, to create the Wolfspeed Endowed Scholars Program. The two entities aim to establish comprehensive education and training curricula and cutting-edge research and innovation programs.” – Wolfspeed, September 9, 2022
  • “This partnership will open opportunities for undergraduate and graduate credentials in Silicon Carbide semiconductor manufacturing, as well as training and career advancement programs for existing semiconductor manufacturing workers.” – Wolfspeed, September 9, 2022
  • President and CEO of Wolfspeed Greg Lowe: “We are particularly excited and proud to not only expand Wolfspeed’s footprint in our home state of North Carolina, but also further our relationship with North Carolina Agricultural and Technical State University to nurture our best-in-class talent pool.” – Wolfspeed, September 9, 2022
  • NC A&T Board of Trustees Chair Hilda Pinnix-Ragland: “The partnership that has been announced today leverages those strengths in industry and in academia to create opportunities for undergraduate and graduate education and credentials, actually real credentials in the semiconductor manufacturing sector.” – WUNC, September 9, 2022
  • “The company brings in about 150 interns per year—positions that are paid and often end with a job at the company.” – WTVD, September 9, 2022

Economic impact 

• The plant will bring jobs and opportunity to a rural area:
  • The Wolfspeed plant will bring 1,800 higher-paying jobs to the region by the end of 2030. Wolfspeed has considerable incentive to provide these jobs because it may receive reimbursement from state and local governments. – WCNC, September 12, 2022
  • The average annual wage of jobs at Wolfspeed is projected to be about $77,753, significantly higher than the existing average annual wage in Chatham County—$41,638. Wolfspeed could increase the region’s payroll by more than $140 million per year. – Chatham Journal Newspaper, September 10, 2022
  • Being deeply rooted in North Carolina, Wolfspeed will bring investment and innovation going forward as the demand for energy-efficient products grows. – Wolfspeed, September 9, 2022
  • Wolfspeed already employs more than 3,000 people in North Carolina. – The Hill, September 9, 2022
  • New investments—such as the Wolfspeed plant—bring people and business back to downtown Siler City, a previously struggling area. Average household income in the western part of Chatham County is about $37,000 annually, and the average annual salary at Wolfspeed is $40,000 more, at $77,753. – Spectrum News 1, September 12, 2022
  • Chatham County Board of Commissioners Chair Karen Howard: “The jobs that Wolfspeed is bringing will pay 87% more than our current average wage. That is a huge win for Siler City, Chatham County, and the region. … The North Carolina Community College system, Chatham County Schools and a network of exceptional public universities in the state were key to bringing this project to our community and will ensure that the jobs of the future are right here in North Carolina and accessible to the residents of Chatham County and beyond.” – Chatham County News, September 9, 2022
• The plant’s opening is growing opportunity for young people:
  • Partnership with NC A&T: “This partnership will open opportunities for undergraduate and graduate credentials in Silicon Carbide semiconductor manufacturing, as well as training and career advancement programs for existing semiconductor manufacturing workers.” – Wolfspeed, September 9, 2022
  • Partnership with the North Carolina Community College System: NCCCS to provide customized training section including education, training and support services for new, expanding and existing business and industry in North Carolina through its network of 58 community colleges. Central Carolina Community College (CCCC) will take the lead on customized training to help meet the regional workforce needs that the Wolfspeed plant will bring to Chatham and surrounding counties. Customized Training will support up to $3.6 million in providing Wolfspeed a skilled workforce. – North Carolina Community Colleges, September 15, 2022

Official supporting statements

• North Carolina Gov. Roy Cooper (D): “Of all the places that Wolfspeed could go, it has picked North Carolina. … When you think about having a talented, educated, diverse workforce, that is what these companies of the future want. And North Carolina can provide it.” – WRAL TechWire, September 9, 2022
• Former White House Director of the National Economic Council Brian Deese: “This $5 billion investment will create thousands of good-paying jobs, while rebuilding America’s supply chains here at home and ultimately helping to lower prices for the American people. … We applaud Wolfspeed and congratulate both Governor Cooper and all North Carolinians.” – WRAL TechWire, September 9, 2022
• U.S. Rep. Valerie Foushee (D-NC): “We are thrilled to welcome Wolfspeed to our community. … When this company could have taken their factory anywhere, they’ve chosen Chatham County and the best state for business as they join a growing list of companies that will support the state’s clean energy future.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
• Chief Economist at the U.S. Department of Commerce Aaron Chatterji: “When job creators make these investments in North Carolina, it’s not just the number of jobs, it’s what it means for families.” – WRAL TechWire, September 9, 2022
• Gov. Roy Cooper: “Wolfspeed’s decision further validates North Carolina as the epicenter of clean energy. … This is another milestone in our drive toward a clean energy economy as it will boost electric vehicle manufacturing and offshore wind while fighting climate change and putting money in the pockets of every day North Carolinians with great paying jobs.” – Wolfspeed, September 9, 2022
• North Carolina House Democratic Leader Robert Reives: “I cannot tell you how excited I am right now. My stomach is fluttering.” – WRAL TechWire, September 9, 2022
  • “This is another incredible announcement for Chatham County and the entire state. … Wolfspeed’s commitment to create 1,800 new jobs and invest $5 billion in our region is a strong testament to the preparation and leadership of the state, regional, and local officials that helped bring this project to our community.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
• North Carolina Senate President Pro Tempore Phil Berger (R): “North Carolina is a world leader in manufacturing, and Wolfspeed’s expansion confirms that. … That wouldn’t be possible without the General Assembly’s long-term commitment to developing a strong, well-educated workforce, reining in burdensome regulations, and lowering taxes.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
• North Carolina Senate Democratic Leader Dan Blue: “Innovative companies know North Carolina is the premier choice for their strategic growth strategies. … Wolfspeed’s decision is a great vote of confidence for our manufacturing and burgeoning clean energy economy to help energize our future success.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
• North Carolina Speaker of the House Tim Moore (R): “I am thrilled that Wolfspeed will be bringing a new manufacturing site to North Carolina that will produce semiconductor chips and devices to benefit millions worldwide. … As we continue on the tried-and-true path of responsible economic growth that has made North Carolina so appealing, it is no surprise that more companies like Wolfspeed are expanding in our state.” – Office of North Carolina Gov. Roy Cooper, September 9, 2022
• White House Deputy Press Secretary Emilie Simons: “The pandemic really exposed vulnerabilities in our entire supply chain and that’s been because we were so reliant on countries like China who produce the majority of semiconductor chips around the world. … And that meant that things like dishwashers and phones and cars were all harder to find, and therefore, more expensive. So if we make more of these semiconductor chips here at home, like with this announcement from Wolfspeed today in North Carolina, we’re going to have more economic security and national security as well.” – WTVD, September 9, 2022
• NC A&T Chancellor Harold L. Martin Sr.: “North Carolina A&T is proud to partner with Wolfspeed to provide new opportunities to pursue the next generation of careers in the green economy, drive innovation and explore new possibilities. … Throughout our rich history as a doctoral, land-grant university and the largest historically Black university in the country, we have believed in the power of our students to change the world. Our expanded partnership with Wolfspeed will allow us to change the world together, and I am incredibly excited for what is to come.” – NC A&T News, September 9, 2022

Selected clips

• “Gov. Roy Cooper makes a formal announcement of a new plant in Chatham County alongside executives with the chip manufacturer Wolfspeed. The factory is expected to bring nearly 2,000 jobs to the area.” – WRAL News, September 9, 2022
• “Wolfspeed begins construction at Chatham County semiconductor plant” – WRAL News, September 12, 2022
• “Wolfspeed selects North Carolina for 445 acre manufacturing campus” – Chatham Journal Newspaper, September 10, 2022