FILE PHOTO: ZF logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay/File Photo
BERLIN (Reuters) -German automotive supplier ZF will no longer take part in a planned chip plant in the German state of Saarland, putting the project on the brink of collapse, the Handelsblatt newspaper reported on Tuesday, citing government and industry sources.
U.S. chipmaker Wolfspeed wanted to build the $3-billion chip plant and a research and development centre in Germany, poised to start in 2027, with ZF to chip in $185 million for a stake.
ZF was not immediately available for comment on its reported withdrawal.
Wolfspeed has previously delayed plans to build the plant in Germany, Reuters reported in June, highlighting the European Union's struggle to increase semiconductor production and reduce its reliance on Asian chips.
The planned plant, which would make computer chips used in electric cars, has not been scrapped entirely and the company is still seeking funding, a Wolfspeed spokesperson said at the time.
A spokesperson for Wolfspeed could not immediately be reached for comment on Tuesday.
The German economy ministry did not immediately comment.
(Writing by Miranda Murray, Editing by Rachel More)
