According to Reuters, Wolfspeed announced that it will build a new plant in Chatham County, North Carolina, to produce silicon carbide materials.

The report pointed out that traditional power management chips are made of silicon, while Wolfspeed uses a new silicon carbide material. Wolfspeed is considered a leader in the technology and says it produces more than 60% of the world's silicon carbide.

Wolfspeed said that in 2027, power chips made of silicon carbide materials will account for more than 20% of the power semiconductor market, while the current proportion is only 5%.

The plant will be completed in 2030 and will be the largest silicon carbide material factory in the world. The initial production capacity will be mainly used to meet its own chip manufacturing needs.

"The new material factory will ultimately increase our silicon carbide wafer manufacturing capacity by approximately 13 times," said John Palmour, Wolfspeed's chief technology officer. "The first phase of the factory is scheduled to be completed in 2024, with an investment of about $2 billion, but the total investment could reach $5 billion."