Oct 23 (Reuters) - Wolfspeed ( WOLF ) has shelved plans

to build a semiconductor factory in Ensdorf, Germany, due to

slower electric vehicle adoption, the U.S. chipmaker said on

Wednesday.

The chipmaker said in June it had delayed plans to build the

$3 billion plant, which would make, in Germany, computer chips

used in electric cars, highlighting the European Union's

struggle to increase semiconductor production and reduce its

reliance on Asian chips.

The demand for silicon carbide chips that were to be

produced in the factory is largely driven by the global EV

adoption, and it is also used in industrial and energy

applications.

Wolfspeed ( WOLF ) announced its plans for the plant and a research

and development center in Germany in February 2023. The move

represents another setback for German efforts to sell the

country as an attractive location for business.

An industry source told Reuters on Tuesday that the German

automotive supplier ZF had intentions to withdraw from

the planned $3 billion microchip manufacturing project with

Wolfspeed ( WOLF ) in western Germany.

The Financial Times first reported the news.

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