Bilion-dollar U.S. investment pours in - fierce competition for automotive chips persists
Electric Mobility Gets a Boost with SiC Technology
Shedding Light on the Future
The electric vehicle (EV) industry is poised for significant progress with the utilization of silicon carbide (SiC) semiconductors. Several corporations are pouring billions into this cutting-edge technology, including American chip manufacturer Wolfspeed. Although the construction of a new factory in Saarland, Germany, is up in the air, Wolfspeed remains a key player in the field of SiC technology, particularly for electric mobility.
Wolfspeed Leads the Charge
Known for their expertise in SiC technology and production, Wolfspeed is gaining ground as a vital component in the EV revolution. SiC chips, with their ability to offer increased range and faster charging for electric vehicles, are becoming increasingly significant. The American company, however, faces a hurdle as state funding approval for the construction of the Saarland factory is yet to be granted. construction can only begin once this approval is secured.
Mercedes Plays Its Part
Prominent EV manufacturer Mercedes has joined forces with Wolfspeed for the supply of SiC semiconductors. This partnership underscores the importance of SiC chips in the electric vehicle industry.
Investing in the Future
Infineon, STMicroelectronics, and Taiwan Semiconductor (TSMC) are also bullish on this technology. All four companies are index members in the BÖRSE ONLINE Chip Power Index, providing investors with an opportunity to invest almost 1:1 in the development of 15 semiconductor stocks.
Uncertain Times Ahead
Wolfspeed, amid broader cost-cutting measures, has indefinitely suspended construction of its SiC device factory in Saarland, Germany. The focus has shifted towards a Chatham County, North Carolina factory, scheduled to begin production in June 2025. No timeline for resuming construction or securing state funding approvals for the Saarland project has been outlined.
Further information about the status of the German state funding approvals for the Saarland project is not readily available.
[1] Source: Wolfspeed press release[2] Source: Saarbrücker Zeitung, March 15, 2023
Conflict of interest noteThe CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Föst, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the price development resulting from the publication: Wolfspeed
Conflict of interest note:The price of the financial instruments is derived from an index as the underlying. Börsenmedien AG has developed this index and holds the rights to it. Börsenmedien AG has concluded a cooperation agreement with the issuer of the presented financial instruments, whereby it grants the issuer a license to use the index. In this context, Börsenmedien AG receives remuneration from the issuer.
- STMicroelectronics, along with Infineon, Taiwan Semiconductor, and other industry players, are heavily investing in SiC technology, reflecting their confidence in its potential impact on the electric vehicle industry.
- Apart from Mercedes, which has partnered with Wolfspeed for the supply of SiC semiconductors, other businesses such as STMicroelectronics are seeing the value in this technology and are eager to explore its possibilities.
- Despite the indefinite suspension of construction for its SiC device factory in Saarland, Germany, Wolfspeed continues to lead in SiC technology, with a new factory scheduled to begin production in Chatham County, North Carolina in June 2025.
- There is particular focus on securing state funding approvals for the construction of the Saarland factory, as this would allow Wolfspeed to continue its significant contributions to the electric mobility field.
- In addition to its role in the electric vehicle industry, SiC technology is receiving considerable attention from financial investors, thanks to its potential for increasing the range and faster charging capabilities of electric vehicles, making it a promising area for future business and technology development.
