The US Could Soon Lead In Silicon Carbide Manufacturing

The Biden-Harris Administration's investment in manufacturing continues, with the news it could be helping to boost silicon carbide manufacturing in the US.

The U.S. Department of Commerce and semiconductor manufacturer Wolfspeed, Inc. have just signed a non-binding preliminary memorandum of terms (PMT) to provide up to US$700m in proposed funding under the CHIPS and Science Act. 

This funding will support the construction of a new silicon carbide wafer manufacturing facility in Siler City, North Carolina. 

This facility will boost the local North Carolina economy, create a wealth of new manufacturing jobs and help to secure a reliable domestic supply of semiconductors. 

“Artificial intelligence, electric vehicles and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies,” says U.S. Secretary of Commerce Gina Raimondo.

“Because of the Biden-Harris Administration’s CHIPS and Science Act, the United States is building and fortifying our semiconductor manufacturing capabilities to serve our economic and national security interests while creating jobs and economic opportunities for communities across the country.” 

In addition to this project, the proposed CHIPS investment will also aid the expansion of Wolfspeed's device manufacturing facility in Marcy, New York. 

Both projects are part of the manufacturer's more than US$6bn capacity expansion plan, set to create more than 2,000 manufacturing jobs and 3,000 construction jobs.

But what exactly is silicon carbide and why is it so vital to the future of US high-tech manufacturing?

What is silicon carbide and why does it matter for US manufacturing?

Silicon carbide is a compound made from silicon and carbon. It can occur is an extremely rare mineral known as moissanite, found in meteorites. It was first discovered in this form back in 1893, in Arizona's Canyon Diablo Meteor Crater.

But most Silicon carbide is made in a lab, meaning it can be manufactured from almost anywhere. 

Silicon carbide has a diversity of manufacturing applications, all of which are critical for the US's high-tech future. 

Silicon carbide is first and foremost used in high-performance semiconductors, which power modern, Industry 4.0 enabled manufacturing. Semiconductors are essential for 5G telecommunications, defence, aerospace and many other industries. 

Silicon carbide is also used in power conversion systems like solar and wind inverters, powering the future of renewable energy systems and power suppliers. LED lighting frequently uses silicon carbide as well.

This material is also growing increasingly important to EVs, specifically EV powertrains, improving range and efficiency by reducing energy losses in inverter and charger components.

Why is this silicon carbide used in so many applications? 

What sets silicon carbide apart and makes it so valuable is its exceptional material properties.

The material has high thermal conductivity meaning it can efficiently dissipate heat, making it capable of withstanding high-temperature applications. It can also handle higher voltages compared to traditional silicon, which is critical for power electronics. 

Silicon carbide is highly resistant to wear, chemical corrosion and oxidation making it a highly-durable material to work with.

On top of all this it has a larger bandgap than silicon, enabling it to perform well in high-frequency, high-power and high-temperature environments.

Wolfspeed has been distinguished by its use of silicon carbide, as the world's largest manufacturer that produces wafers and devices made from the material. 

By using silicon carbide Wolfspeed has made its semiconductors highly durable and energy-efficient, leading to them being used to power plug-in hybrids and EVs. These semiconductors boast faster charging times, extended driving range-per-charge and lower overall system costs.

It's estimated that Wolfspeed's products-which are used across renewable energy, AI, military defence and industrial capacities-will save approximately 72 million metric tons of CO2 over their lifetimes.

The company is a key example of why this material is so critical to the future of US manufacturing.

Importance of silicon carbide to US manufacturing

Silicon carbide is so critical to US manufacturing for these three core reasons. 

1. Energy efficiency 

As the US seeks to transition to an economy and industry based on clean energy, silicon carbide will play a vital role in boosting energy efficiency. 

It's powering the sustainable innovations of the future, from EVs to renewable technologies, which need greater efficiency to increase adoption.

2. Supply chain resilience 

The global semiconductor supply chain has in recent years been a key geopolitical issue. In the post-pandemic era, ensuring supply chain resiliency and access to semiconductor technology is a must. 

Investing in silicon carbide manufacturing in the US strengthens domestic production capacity, reducing reliance on foreign suppliers and ensuring technological development can continue unhindered. 

3. Advanced manufacturing 

Silicon carbide is critical to advanced manufacturing initiatives within automotive, defense and aerospace. This is due to it's use in semiconductors and other electronics. These three industries are essential to the US economy and silicon carbide can create more efficient and durable components for them.

This material has properties that make it phenomenally valuable to US manufacturing, a fact recognised by the Biden-Harris administration.

The new Wolfspeed facility in Siler City, North Carolina will be named the John Palmour Manufacturing Centre for Silicon Carbide.

Due to the CHIPS investment the manufacturer anticipates a five-fold increase in their silicon carbide device output and a ten-fold increase in 200mm materials production capacity. 

Something which both Wolfspeed and the US Government is pleased about.

“We intend to build a booming semiconductor R&D industry in the United States that will attract and keep semiconductor manufacturers in this country,” says Laurie Locascio, Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director.

“These efforts depend on a reliable domestic supply of specialized semiconductor wafers and devices, such as those produced by firms like Wolfspeed.

"With proposed investments such as this, we are realizing the goals of the CHIPS and Science Act by building out the domestic supply chains that will keep America’s R&D capacity healthy and competitive.” 

“We’re grateful for the continued support of Secretary Raimondo and the CHIPS Office throughout this process, as this announcement marks a pivotal milestone in Wolfspeed’s long-term growth strategy and important technology," says Wolfspeed CEO Gregg Lowe. 

"As a key player in the semiconductor industry, this proposed funding will enable us to solidify our leadership position with a first-of-a-kind 200mm silicon carbide manufacturing footprint in New York and North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain."

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