Is ZF pulling out of Wolfspeed's German chip project?
ZF is expected to back out from a semiconductor manufacturing project in collaboration with US SiC specialist Wolfspeed in Germany, reports Reuters.
The change of plans comes after Wolfspeed decided to pause the project, citing weaker-than-anticipated demand for semiconductors and uncertainties about the viability of expanding into the European market, an industry source told Reuters.
ZF had initially planned to invest USD 185 million for a share in the Saarland fab, which was set to produce chips for electric vehicles.
Wolfspeed first revealed plans for the fab and an R&D center in Germany in early 2023. Should the project be abandoned, it could pose another challenge to Germany's efforts to attract business investment.
Responding to media claims, ZF denied being the cause of the delay and declined to comment on reports of its withdrawal.
"Wolfspeed is leading the project. ZF has consistently provided strong and active support," a ZF spokesperson told Reuters in an emailed statement.
