Cree, Inc., a lighting and power frequency product manufacturer, announced plans to invest $1 billion to build the world’s largest silicon carbide device manufacturing facility in New York on Monday.

The new facility will be enable a 25 percent increase in capacity, part of a larger goal for the company. Cree will also expand in its Durham factory location.

The company uses silicon carbide to support technology that aids in electric vehicle, 4G/5G mobile and industrial markets.

“Silicon carbide is one of the most pivotal technologies of our time, and is at the heart of enabling innovation across a wide range of today’s most groundbreaking and revolutionary markets,” Cree CEO Gregg Lowe said in a statement.

The state of New York will provide a $500 million grant from Empire State Development. Cree will also be eligible for a variety of additional local incentives. The company expects to realize a net capital savings of about $280 million.

Cree’s silicone carbide technology has been used in the military, aerospace and transportation markets. The company also produces radio frequency semiconductors and lighting class LEDs.

Shares of Cree were trading at $50.69 on Tuesday, down 91 cents.