Expansion project boosts production and jobs at Wolfspeed’s Mohawk Valley Fab

MARCY — Wolfspeed, Inc. (NYSE: WOLF) is in the midst of a production buildout that will put its Mohawk Valley Fab facility at full capacity by mid-2026 while employment and hiring activity remains well ahead of schedule.

“We’re making very significant strides in the projected timeline of the buildout,” says Janet Chow, Wolfspeed’s VP of technology and new products. Earlier this year, Wolfspeed began work on a $2 billion project to build out the rest of its 125,000-square-foot clean room.

The company currently has one full line up and running at the fab, Chow says. “In about a year, we expect to double our capacity,” she adds, with the full buildout scheduled for completion by mid-2026. Wolfspeed recently announced it received $1.25 billion — with an option for up to $750 million more — in funding from an investment group led by Apollo (NYSE: APO) At full capacity, the Mohawk Valley Fab can produce about $2 billion worth of product in an anticipated $20 billion market.

Employment now tops 400 people at the fab, Chow says. “We are aiming to get to 650 by full buildout.” When the fab opened two years ago, the company’s original projections called for 400 employees by the end of 2026 and 600 by 2029.

This year, Wolfspeed reached an important milestone when it began shipping the first materials from the fab to customers, Chow says. “It’s definitely a very significant milestone for the team,” she adds.

Another milestone was the addition of development activities at the fab this year. “We come out with new technology,” Chow says. “A lot of time, it’s driven by customers.”

Some of the company’s customers include Lucid Motors, Mercedes-Benz, and Jaguar Land Rover. The majority of the silicon-carbide semiconductors Wolfspeed produces go to the electric-vehicle industry, where they are used in the chargers and engines, Chow says.

Wolfspeed uses 200 mm silicon-carbide wafers to make the chips, while the industry standard is 150 mm. The larger wafers, which measure about eight inches compared to about six inches for the 155 mm ones, allow Wolfspeed to fabricate 70 percent more chips from each wafer. And it takes the machinery the same amount of time to produce them, Chow adds, which really gives Wolfspeed a production advantage.

The company manufactures its own wafers at its Durham, North Carolina campus and announced last fall it will build a $1.3 billion materials-manufacturing facility that will increase the company’s production capacity by 10 times. It will primarily produce 200 mm wafers, but can also produce 150 mm wafers.

Wolfspeed recently announced a new 10-year deal with Renesas Electronics Corp. that provides Renesas a decade-long supply of 150 mm and 200 mm silicon carbide bare and epitaxial wafers from Wolfspeed. Renesas paid a $2 billion deposit to secure the supply.

Renesas will use the supply of wafers to scale production of silicon-carbide power semiconductors starting in 2025.

“With the steepening demand for silicon carbide across the automotive, industrial, and energy sectors, it’s critically important we have best-in-class power semiconductor customers like Renesas to help lead the global transition from silicon to silicon carbide,” Wolfspeed President/CEO Gregg Lowe said in a statement.

The $2 million deposit from Renesas will help support construction of the North Carolina materials facility. Wolfspeed also announced plans to build a new fab in Saarland, Germany to better serve its global customers.

Wolfspeed’s semiconductors, power-switching devices, and RF devices are used in the electric vehicle, fast charging, 5G, renewable energy and storage, and the aerospace and defense industries.