According to people familiar with the matter on Tuesday, German auto parts supplier ZF is interested in withdrawing from the $3 billion German chip manufacturing project in cooperation with American chipmaker Wolfspeed (WOLF.US).
Sources said that prior to this, due to weaker-than-expected semiconductor demand, Wolfspeed decided to suspend the project and doubted whether it was worth entering the European market.
ZF originally planned to invest 185 million US dollars to take a stake in the Saar factory, which mainly produces chips for electric vehicles.
On February 1, 2023, Wolfspeed, the global leader in silicon carbide technology, and ZF Group, a global technology company dedicated to shaping the next generation of mobility, announced a strategic partnership. The two parties plan to establish a joint innovation laboratory to promote the progress of silicon carbide system and equipment technology in mobility, industrial and energy application fields. This strategic partnership also includes a significant investment by ZF to support the construction of the world's largest and most advanced 200mm silicon carbide wafer factory in Ensdorf, Germany.
Media reported in June last year that Wolfspeed postponed the plan and was still seeking funds. Construction will not start until mid-2025 at the earliest.
In addition, American chipmaker Intel (INTC.US) said last month that the construction of a factory in eastern Germany will be postponed by two years as part of a cost-cutting plan.
Currently, German Chancellor Olaf Scholz is working hard to revive this largest economy in Europe. High energy costs and regulatory obstacles have hit Germany's industry.
Scholz told the German Employers' Association (BDA) earlier on Tuesday: "We need more growth. The cake must grow again." He promised to work with the industry to revive economic growth.
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