ZF to quit Wolfspeed's German chip project, says industry source


FILE PHOTO: ZF logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay/File Photo

FRANKFURT (Reuters) -German automotive supplier ZF intends to withdraw from a planned $3 billion microchip manufacturing project with U.S. chipmaker Wolfspeed in western Germany, an industry source said on Tuesday.

The rethink followed Wolfspeed's decision to put the project on hold because of weaker than expected semiconductor demand and doubts whether its entry into the European market would be worthwhile, the source told Reuters.

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