Key facts
- Wolfspeed received a conditional loan commitment of up to $1.5 billion from the US Department of Defense.
- The loan is for 30 years and aims to expand domestic production of silicon carbide and gallium nitride materials.
- The funding is contingent on due diligence, definitive agreements, and government approvals.
- Wolfspeed must issue warrants for up to 7.5% of its fully diluted equity as part of the deal.
Chipmaker Wolfspeed announced on Wednesday that it has received a conditional loan commitment for up to $1.5 billion from the US Department of Defense. The funding is intended to expand the company's domestic production of silicon carbide materials and power devices, which are crucial for applications like electric vehicles and industrial power systems.