June 21, 2024 /SemiMedia/ -- According to report, Wolfspeed recently postponed plans to build a $3 billion fab in Germany as the European Union faces difficulties in increasing semiconductor production and reducing its reliance on Asian chips.

The report noted that Wolfspeed's planned fab in Saarland, Germany, which will produce chips for electric vehicles, has not been completely canceled and the company is still seeking funding.

The report also noted that Wolfspeed is focusing on increasing production at its New York fab after cutting capital spending due to weak electric vehicle markets in Europe and the U.S. The company will not start construction in Germany until mid-2025 at the earliest, two years later than originally planned.