August 26, 2024 /SemiMedia/ — Wolfspeed, a leading manufacturer of silicon carbide (SiC) wafers, has announced the closure of its 6-inch SiC wafer production facility in Durham, North Carolina. This move comes as the company seeks to reduce costs and adjust to shifting market demands. Despite the closure, Wolfspeed remains committed to its operations in Durham and plans to open a new facility in Chatham County, creating 1,800 jobs.

Wolfspeed CEO Gregg Lowe stated that the decision to close the Durham plant was driven by a need to reduce demand for its 150mm (6-inch) SiC wafers and to redirect resources to its 200mm (8-inch) wafer production facility in New York, which offers greater cost efficiency. The closure was also influenced by a June equipment incident at the Durham facility that increased costs and lowered output.

In addition, Wolfspeed has postponed plans to build a new $3 billion facility in Saarland, Germany. The plant, originally intended to produce computer chips for electric vehicles, will be delayed until mid-2025 due to weakened demand in the European and U.S. electric vehicle markets. Wolfspeed has decided to prioritize capital expenditures towards boosting production at its New York facility.

Despite these challenges, Wolfspeed has made significant progress in expanding its 200mm wafer production and aims to reach 25% of operational capacity in the first fiscal quarter. The company believes this shift will enhance profitability and set the stage for future growth.