Wolfspeed and ZF Announce Plans to Build Major EV Chip Plant in Germany

Wolfspeed, Inc. and the global technology company, ZF, have announced plans to construct the world’s most advanced and largest 200mm Silicon Carbide device plant in Ensdorf, Germany.  ZF intends to support this new construction by making a sizable financial investment in the hundreds of millions of dollars in exchange for Wolfspeed common stock.

As a part of this investment ZF will have a minority ownership position in the plant.

Wolfspeed will maintain all operational and management control rights in the new facility.

The two companies will also create a joint R&D innovation lab to drive advances in Silicon Carbide systems and devices for mobility, industrial and energy applications. 

The goal of the collaboration is to develop breakthrough innovations covering the full value chain from chip to complete systems.

The R&D centre will focus on innovation for Silicon Carbide systems and devices to meet specific requirements in all mobility segments including consumer, commercial, agricultural, and industrial vehicles as well as in the industrial and renewable energy markets.

The collaboration aims to drive improvements such as higher efficiency, increased power density and higher performances for electrification solutions.

ZF and Wolfspeed previously announced a strategic partnership in 2019 to create industry-leading, highly efficient electric drivelines with a Silicon Carbide inverter.

Dr. Holger Klein, CEO of ZF, says: “These initiatives are a significant step towards a successful industrial transformation. They strengthen European supply resilience and, at the same time, support the European Green Deal and the strategic goals for Europe’s Digital Decade.”

Gregg Lowe, president and CEO of Wolfspeed, adds: “We have a strong partner by our side in ZF, which brings industry-leading experience in scaling components for electric mobility as well as the aptitude to accelerate innovation in Silicon Carbide systems and power devices. I am confident this partnership will lift Silicon Carbide semiconductor technology to a new level of global impact, supporting increased sustainability and efficiency efforts across a multitude of industries.”

ZF is a global technology company supplying systems for passenger cars, commercial vehicles and industrial technology, enabling the next generation of mobility.