Current:Home > ScamsBiden admin to provide $750 million to North Carolina-based Wolfspeed for advanced computer chips -Momentum Wealth Path
Biden admin to provide $750 million to North Carolina-based Wolfspeed for advanced computer chips
View
Date:2025-04-12 22:13:45
WASHINGTON (AP) — The Biden-Harris administration announced plans Tuesday to provide up to $750 million in direct funding to Wolfspeed, with the money supporting its new silicon carbide factory in North Carolina that makes the wafers used in advanced computer chips and its factory in Marcy, New York.
Wolfspeed’s use of silicon carbide enables the computer chips used in electric vehicles and other advanced technologies to be more efficient. The North Carolina-based company’s two projects are estimated to create 2,000 manufacturing jobs as part of a more than $6 billion expansion plan.
“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,” Commerce Secretary Gina Raimondo said in a statement.
The new Wolfspeed facility in Siler City could be a critical symbol in this year’s election, as it opened earlier this year in a swing state county that is undergoing rapid economic expansion in large part due to incentives provided by the Biden-Harris administration.
Vice President Kamala Harris, the Democratic nominee, is making the case to voters that the administration’s mix of incentives are increasing factory work, while former President Donald Trump, the Republican nominee, says the threat of broad tariffs will cause overseas factories to relocate in the United States.
In 2023, President Joe Biden spoke at Wolfspeed to promote his economic agenda, saying it would help the United States outcompete China. Trump narrowly won North Carolina during the 2020 presidential election and has talked about bringing back the state’s furniture manufacturing sector.
The Biden-Harris administration’s argument is that the government support encourages additional private investments, a case that appears to apply to Wolfspeed.
In addition to the government grant, a group of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company and Capital Group plan to provide an additional $750 million to Wolfspeed, the company said. Wolfspeed also expects to receive $1 billion from an advanced manufacturing tax credit, meaning the company in total will have access of up to $2.5 billion.
Wolfspeed CEO Gregg Lowe told The Associated Press that the United States currently produces 70% of the world’s silicon carbide — and that the investments will help the country preserve its lead as China ramps up efforts in the sector.
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.”
veryGood! (927)
Related
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- Search for missing Titanic sub includes armada of specialized planes, underwater robots and sonar listening equipment
- The Lighting Paradox: Cheaper, Efficient LEDs Save Energy, and People Use More
- Trump Proposes Speedier Environmental Reviews for Highways, Pipelines, Drilling and Mining
- Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
- Vanderpump Rules Reunion Part One: Every Bombshell From the Explosive Scandoval Showdown
- Jack Hanna's family opens up about his Alzheimer's diagnosis, saying he doesn't know most of his family
- Two Farmworkers Come Into Their Own, Escaping Low Pay, Rigid Hours and a High Risk of Covid-19
- North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
- FDA changes rules for donating blood. Some say they're still discriminatory
Ranking
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- Elliot Page Grateful to Be Here and Alive After Transition Journey
- Think the COVID threat is over? It's not for these people
- Social media can put young people in danger, U.S. surgeon general warns
- Louvre will undergo expansion and restoration project, Macron says
- Two and a Half Men's Angus T. Jones Is Unrecognizable in Rare Public Sighting
- Stephen tWitch Boss' Autopsy Confirms He Had No Drugs or Alcohol in His System at Time of Death
- Facing cancer? Here's when to consider experimental therapies, and when not to
Recommendation
McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
Vanderpump Rules' Tom Sandoval Claims His and Ariana Madix's Relationship Was a Front
Want to understand your adolescent? Get to know their brain
Ariana Madix Claims Tom Sandoval and Raquel Leviss Had Sex in Her Guest Room While She Was Asleep
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
Heart transplant recipient dies after being denied meds in jail; ACLU wants an inquiry
Jacksonville Plays Catch-up on Climate Change
Heart transplant recipient dies after being denied meds in jail; ACLU wants an inquiry