Electronics manufacturer Cree on Monday announced plans to establish the world’s largest silicon carbide fabrication facility in upstate New York.
The North Carolina-based maker of LED lighting and semiconductors said the $1 billion “North Fab” facility outside Utica, New York, would produce 200-millimeter wafers for power and radio frequency applications.
The project, along with the ongoing construction of a materials facility at its Durham headquarters, is part of an effort to bolster the company’s Wolfspeed electronics business. The new facility will be up to 480,000 square feet once completed; officials expect highly automated wafer production at North Fab to ramp up in 2022.
Cree’s agreement with New York state, according to the announcement, would save the company about $280 million in capital costs and allow for future expansion of the silicon carbide plant. The company said the material will help power 5G networks, electric vehicles, and other next-generation systems.
“Silicon carbide is one of the most pivotal technologies of our time, and is at the heart of enabling innovation across a wide range of today’s most groundbreaking and revolutionary markets,” Cree CEO Gregg Lowe said in a statement.
The company is set to receive a $500 million state grant and could see additional incentives and abatements from local governments. Cree also expects to receive equipment and tooling from the State University of New York system.
