Wolfspeed shelved its plans to construct a semiconductor factory in Germany, as reported on October 23, 2024. This decision follows German automotive supplier ZF's intention to withdraw from the planned $3 billion microchip manufacturing project in Saarland, Germany.
The primary reasons cited for suspending the project include weaker than anticipated demand for semiconductors and a slower adoption rate of electric vehicles in Europe. This indicates a reassessment of market conditions and capital deployment strategies by Wolfspeed.
The German factory, which Wolfspeed had announced plans for in February 2023, was intended to be a significant expansion of its manufacturing footprint. The suspension of this project reflects a strategic adjustment in response to evolving market dynamics and demand forecasts.
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