Biden Backs Wolfspeed with $750M for Silicon Chip Plan

The Biden-Harris administration committed up to $750 million in direct funding to Wolfspeed on Tuesday.
Wolfspeed is a North Carolina-based company specializing in silicon carbide technology for advanced computer chips.
The funding will support Wolfspeed’s silicon carbide wafer production at its new facilities in North Carolina and Marcy, New York, part of a broader $6 billion expansion that promises to create 2,000 manufacturing jobs.
Wolfspeed’s use of silicon carbide enables the computer chips used in electric vehicles and other advanced technologies to be more efficient.
“Artificial intelligence, electric vehicles, and clean energy are technologies that will define the 21st century,” said Biden’s Secretary of Commerce Gina Raimondo in a statement.
“Through investments in companies like Wolfspeed, the Biden-Harris administration is taking a critical step toward reigniting U.S. manufacturing of the chips that underpin these technologies.”
Wolfspeed’s new Siler City facility, which opened earlier this year, is located in a North Carolina swing state county experiencing significant economic growth—largely due to federal incentives.
Manufacturing has become a key debate in the 2024 presidential race, and this project could become a symbol of the Biden administration’s efforts to boost U.S. manufacturing.
Vice President Kamala Harris has emphasized that these government incentives are helping increase factory jobs, while Republican challenger Donald Trump is campaigning on a platform of tariffs to bring overseas manufacturing back to the U.S.
During a 2023 visit to Wolfspeed, President Joe Biden outlined his economic goal to help the U.S. outcompete China in advanced manufacturing.
Trump, who narrowly won North Carolina in 2020, has also focused on manufacturing, particularly in the state’s furniture sector.
The administration argues that government funding, like the grant awarded to Wolfspeed, encourages private sector investment.
Wolfspeed has already secured an additional $750 million from a group of investors, including Apollo, The Baupost Group, Fidelity, and Capital Group.
Combined with a $1 billion tax credit from the CHIPS Act, Wolfspeed will have access to up to $2.5 billion in total funding.
Wolfspeed CEO Gregg Lowe said “we’re very happy with this grant” and that the Commerce Department staff awarding funds from the 2022 CHIPS and Science Act was “terrific.”
He added that the United States currently produces 70% of the world’s silicon carbide, and that the investments will help the country preserve its lead over China.
Last month, China blamed the U.S. after the Netherlands updated its export licensing requirements for certain lithography machines, further restricting China’s access to older chipmaking processes.
Lithography machines produce advanced microchips essential for a wide range of technologies, from electric cars to guided missiles.
This article includes reporting from The Associated Press