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February 2023


Historic decision for Saarland: U.S. chip producer Wolfspeed builds a factory for silicon carbide semiconductors on the site of a former power plant in Ensdorf

 

Since February 1, 2023 it has been certain: The American chip producer Wolfspeed will build the largest and most sophisticated factory for silicon carbide semiconductors worldwide on the site of the former power plant in Ensdorf. This was announced by Gregg Lowe, President and CEO of Wolfspeed, in the presence of Federal Chancellor Olaf Scholz, Federal Economics Minister Robert Habeck, Saarland´s Minister-President Anke Rehlinger and Economics Minister Jürgen Barke. Key messages: The investment volume will be roughly 2.5 billion euros and around 600 jobs will be created in the medium run. With the ZF Group, also the biggest employer in Saarland is involved in the project. On the part of ZF, Stefan von Schuckmann, Member of the Board of Management, and CEO Holger Klein were present in Ensdorf.

The setting is symbolic because the former power plant site is a so-called brownfield. The area sized about 68 hectares is the first site to be successively developed under the Masterplan 2.0 which was adopted by the state government to provide additional settlement areas. Responsible for the implementation of the Masterplan, the development of the Ensdorf site and the company settlement itself is gwSaar – Saarland Economic Promotion Corporation.

The construction of the semiconductor factory is a historic decision, as `a new chapter in economic history is being opened in Saarland`, said Minister-President Anke Rehlinger. `The establishment of Wolfspeed and the decision of the ZF Group to make Saarbrücken the lead location for e-mobility are the expression of an atmosphere of departure that will be decisive for the future of our country`, Rehlinger stated.

The fact that the location decision also has a historic dimension for the entire Federal Republic was underlined by the presence of Chancellor Olaf Scholz, who said with reference to the location: `The industrial revolution returns to Ensdorf. The production plant for ultramodern semiconductors from Wolfspeed and ZF is – not only for Saarland from a historical view – an important contribution to supply security for the German and European industry. This project shows Germany’s competitiveness as a location, increases the resilience of our industry and stands for a successful structural change.` He added that the investment would be supported not only by the Federal government, but probably also by the EU.

Gregg Lowe summed up in one sentence why Wolfspeed has chosen Saarland as a location: `When we were looking for a location throughout Europe, we fell in love with Saarland very quickly.` However, Lowe as well as Saarland Economics Minister Jürgen Barke and gwSaar Managing Director Thomas Schuck stressed that there were also hard facts behind the decision. So, Saarland´s central location in Europe and its good transport connections are one reason. Particularly Ensdorf offers an optimal supply with energy in all directions via an on-site transformer station in the extension of which investments are also being made. Furthermore, the immediate proximity to the Saar river provides best conditions for the quite high cooling water consumption during chip production. Last but not least, both Wolfspeed and ZF are sure that they can recruit sufficient and well-qualified personnel at the automotive location Saarland to meet the multiple requirements of production.