Power semiconductor maker Wolfspeed announced a conditional loan commitment of up to $1.5 billion from the US Department of Defense to expand domestic silicon carbide (SiC) materials and power device capacity. Shares jumped 27% in after-hours trading on the news.
Wolfspeed focuses on SiC chips, which offer higher efficiency for high-power conversion in EVs, solar inverters, and industrial power systems. The 30-year loan comes from the DoD's Office of Strategic Capital. The company says it will help optimize its capital structure and strengthen its financial position.
Beyond SiC expansion, funds will go toward gallium nitride (GaN) technology upgrades for next-generation communications infrastructure and electronic warfare systems, plus radiation-hardened technology R&D.
The funding remains subject to due diligence, final agreements, and government approvals, with multiple conditions. Under the terms, Wolfspeed must issue warrants to the DoD, allowing it to purchase up to 7.5% of fully diluted equity.
ICgoodFind: The DoD loan helps Wolfspeed expand SiC capacity while advancing GaN and radiation-hardened devices, giving wide-bandgap power semiconductors a funding boost.
ICgoodFind Summary: Wolfspeed's $1.5B conditional loan signals strong government backing for domestic wide-bandgap power semiconductors, spanning SiC, GaN, and rad-hard technologies.
