NEW DELHI, Oct 24 (Reuters) - A decision by U.S.

chipmaker Wolfspeed ( WOLF ) to shelve plans to build a

production site in the German state of Saarland frees up 2

billion euros ($2.16 billion) in funds, but the German economy

minister is not happy about this, he said on Thursday.

"This was associated with great hopes for Saarland," Robert

Habeck said of the now-shelved plans, speaking during a visit to

New Delhi for a regional business conference.

Wolfspeed ( WOLF ) said on Wednesday it had dropped the plan to build

a semiconductor factory in Ensdorf in the south-western state

due to slower electric vehicle adoption in Europe.

The move was a blow to Germany's push to boost its

attractiveness as a business location and to scale up local

production of key technologies.

He lamented the company's decision, adding: "We need our own

sovereignty in the production of semiconductors."

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