Durham-based Wolfspeed to close production facility; tout Chatham County investment

DURHAM, N.C. (WTVD) -- Silicon chip manufacturer, Wolfspeed, has announced they will be closing one of their production facilities in Durham.

Company executives shared the news during Wednesday's earnings call, as they cited shifting demand for its products made at the 150 mm production facility.

"As we've discussed previously, our 200-millimeter device fab is currently producing solid results at lower costs than our Durham 150-millimeter fab, while also presenting significant die cost advantages. This improved profitability gives us the confidence to accelerate the shift of our device fabrication to Mohawk Valley, while we assess the timing of the closure of our 150-millimeter device fab," said Gregg Lowe, Wolfspeed President and CEO.

President Biden visited Wolfspeed's Durham headquarters in March 2023, part of his Investing in America tour where he touted the CHIPS Act. In a statement, a company spokesperson stressed its headquarters and other facilities (including Materials and Epi factories) will remain in Durham.

It added: We remain strong in our commitment to North Carolina, with a focus on the continued progress of our materials fab in Siler City, a multi-billion dollar investment that will bring thousands of jobs to the area. As we are at the very beginning of this process, we do not yet have specifics about the total number of employees impacted or the exact timing of when the transition will be complete. We will complete the analysis needed and communicate the anticipated timeline by the next earnings call in early November.

Wolfspeed's stock has dropped 70% year-to-date, including 5% Thursday, now trading at just under $13 a share.

ABC 11 reached out to the Department of Commerce for an interview regarding the announcement, as well as ongoing efforts to attract companies and investment to the state. At this time, they have not responded to our request.

How many workers this impacts has also not been released. The company said it will communicate the anticipated timeline of the closure by the next earnings call in early November.