[News] Silicon Carbide Boom: Wafer Fabs Gearing Up

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As demand for silicon carbide (SiC) continues to rise across sectors such as electric vehicles, renewable energy systems, and artificial intelligence, investments in SiC wafer fabs are also surging. Around the world, new SiC wafer fabs are being actively developed, and recently, news has emerged that another SiC manufacturing facility is nearing completion.

Wolfspeed’s Silicon Carbide Wafer Fab Nears Completion

Recent reports indicate that Wolfspeed’s $5 billion silicon carbide wafer fab is nearing completion. The company aims to take full control of the facility by March this year and begin producing advanced 200mm (8-inch) SiC wafers in June.

Located in Chatham County, North Carolina, this fab was announced in September 2022 as the world’s largest silicon carbide manufacturing facility. By March 2024, the plant reached its topping-out milestone.

Wolfspeed is one of the leading global manufacturers of silicon carbide, boasting extensive experience and technical expertise in substrate technology, epitaxy growth, and device manufacturing. The Chatham County fab is expected to boost Wolfspeed’s existing SiC production capacity, supporting the next generation of semiconductors critical for energy transition and AI.

The U.S. state and local governments have pledged over $700 million in funding to support the facility, with part of the funds already allocated for site preparation. As the Chatham County fab nears completion, Wolfspeed is also working in Washington to secure additional funding under the CHIPS Act.

Meeting Market Demand: Industry Giants Preparing for Expansion

Beyond Wolfspeed, major semiconductor manufacturers such as STMicroelectronics, onsemi, Infineon, Bosch, Fuji Electric, and Mitsubishi Electric are all constructing silicon carbide fabs to meet the growing market demand, with a strong focus on 8-inch SiC wafers.

STMicroelectronics has announced plans to build the world’s first fully integrated silicon carbide manufacturing facility in Catania, Italy. The project, with an estimated total investment of €5 billion (approximately $5.4 billion), will receive around €2 billion in support from the Italian government under the EU Chips Act.

This facility will cover the entire production chain, including power devices, modules, testing, and packaging, and will be integrated with ST’s existing SiC substrate manufacturing site in Catania. Production is expected to begin in 2026, with full operational capacity targeted for 2033.

Infineon is investing €2 billion in the first phase of its new wafer fab in Kulim, Malaysia, which is set to enter mass production in 2025. This facility will focus on manufacturing 200mm silicon carbide power semiconductor products.

China is also actively expanding its silicon carbide industry, with key projects including YASC’s advanced base in Wuhan, Silan Microelectronics’ 8-inch SiC power device production line in Xiamen, and United Nova Technology Integrated Circuit’s 8-inch SiC device R&D and production line.

Notably, in January this year, Hong Kong welcomed its first semiconductor wafer fab project, which is also silicon carbide-related. J Square Semiconductor (Hong Kong) Co., Ltd. (JL Cube) signed a Memorandum of Understanding (MOU) with the Federation of Hong Kong Industries (FHKI) to establish an 8-inch silicon carbide wafer fab in Hong Kong. The project, with a total investment of HK$6.9 billion, is expected to reach an annual capacity of 240,000 wafers, sufficient to support the production of 1.5 million new energy vehicles.

(Photo credit: Wolfspeed )