ZF plans to build a USD 30 billion semiconductor plant in Germany
🟦 One of the world’s largest SiC semiconductor factories in Germany
Power semiconductor giant Wolfspeed plans to build a USD 30 billion (approximately JPY 4000 billion) semiconductor plant in the German state of Saarland with German auto parts manufacturer ZF. It will be one of the world’s largest silicon carbide (SiC) power semiconductor factories. The new plant will begin manufacturing semiconductors in 2027 and is expected to reach full operation by 2030.
🟦 Plans dependent on German government subsidies
ZF owns its largest transmission plant near the Wolfspeed plant. ZF plans to invest in part of Wolfspeed’s plant for the production of semiconductors for electric vehicles (EVs). The construction of the plant depends on a subsidy that covers 1/4 of the total investment. The German government has not decided on subsidies, and ZF and Wolfspeed expect a final decision on subsidies in the coming months.
Depending on European subsidies, ZF plans to build a USD 30 billion semiconductor plant for EVs
It is not uncommon for auto parts manufacturers such as Bosch and Denso to have semiconductor factories. It is also a good strategy for ZF to gain experience with a joint venture plant before having its own plant.