Wolfspeed to start construction of Siler City mega factory after landing key permit

Brian Gordon /bgordon@newsobserver.com

Nine months after announcing plans for its new $5 billion plant in Chatham County, the Durham-based semiconductor firm Wolfspeed has cleared a key regulatory hurdle to construction.

On Thursday, the North Carolina Department of Environmental Quality issued an air quality permit to Wolfspeed under the federal Clean Air Act. “The site is fully prepped, and now we can move forward with actual construction of the building,” Wolfspeed spokesperson Melinda Walker told The News & Observer.

The facility is expected to occupy 445 acres near Siler City in far western Chatham County.

According to the Clean Air Act, the plant is considered a “major source” for its potential to emit hazardous pollutants. According to the state Division of Air Quality (DAQ), nitrogen oxide emissions from the Wolfspeed plant could reach 113 tons per year.

The state said steps will be taken to guarantee emissions meet applicable environmental and health standards. Wolfspeed will be required to use a gas scrubber system to control air pollutant emissions and a gas abatement system to further control emissions.

“Air dispersion modeling reviewed by DAQ shows the facility’s emissions will comply with applicable standards,” the state’s air quality division said in a statement. “The permit includes conditions that ensure ambient levels of all pollutants beyond the facility’s fence line comply with emission standards, including applicable health-based standards.”

In response to public comments, DAQ said it “performed internal air dispersion modeling,” which projected Wolfspeed will adhere to “the one-hour nitrogen dioxide (NO2) National Ambient Air Quality Standard.” The U.S. Environmental Protection Agency sets this standard at 100 parts per billion.

“The facility will be subject to record-keeping requirements and regular inspections,” DAQ added.

What is Wolfspeed’s silicon carbide?

Wolfspeed grows its own unique semiconductor material, called silicon carbide, which is a combination of silicon and carbon. The company then cuts its silicon carbide into blank circular wafers, which eventually get made into chips that power equipment like electric cars.

The Siler City facility is expected to greatly expand Wolfspeed’s capacity to produce wafers. The company has pledged to employ more than 1,800 people at the site by the end of the decade.

With the air quality permit secured, Walker said Wolfspeed is now eligible to receive a building permit from Chatham County, noting the county has “been very supportive in making sure we get that in a timely manner so we can keep moving forward.”

The company hopes to complete the first phase of construction by the end of next year.

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.

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