US Military Backs $1.5B Conditional Loan for Advanced Defense Chips
The 30-year financing would support silicon carbide output and gallium nitride upgrades for communications and electronic warfare systems.
- On Wednesday, the U.S. Department of Defense issued a conditional commitment of up to $1.5 billion in long-term financing to chipmaker Wolfspeed to expand domestic production of silicon carbide and gallium nitride semiconductors.
- The company plans to use the financing to optimize its capital structure and improve its financial foundation. CEO Robert Feurle stated, "SiC and GaN have critical national security applications," emphasizing the 30-year term's strategic importance.
- Wolfspeed intends to upgrade its gallium nitride manufacturing for next-generation communications and electronic warfare systems. The firm also aims to develop radiation-hardened versions of silicon carbide and gallium nitride products for demanding aerospace and military applications.
- Shares jumped 27% in extended trading Wednesday, extending an 80% year-to-date gain. Wolfspeed would issue warrants for up to 7.5% of fully diluted equity, with the loan nearly matching its $1.63 billion market value.
- The transaction remains subject to substantial due diligence, final agreements, and government approvals. Wolfspeed cautioned there is no guarantee the loan will be finalized or that any funding will ultimately be provided by the Department of Defense.
21 Articles
21 Articles
Wolfspeed Soars 14% on $1.5B Conditional Department of War Loan Commitment; On Semiconductor and Texas Instruments Slip
A conditional federal financing commitment is drawing heavy buying into Wolfspeed (NYSE:WOLF), while larger power chipmakers drift lower with the rest of the semiconductor group. Wolfspeed stock is at $35.89, up 14% in morning trading. Meanwhile, shares of On Semiconductor (NASDAQ:ON), a direct silicon carbide rival, are down 2% to $80.59. The SPDR S&P 500 […]
Wolfspeed loan: Pentagon offers $1.5bn for up to 7.5% of the chipmaker
The US Department of War has offered chipmaker Wolfspeed a conditional loan of up to $1.5bn over 30 years. In return, Wolfspeed would give the department warrants to buy up to 7.5% of the company. Wolfspeed filed for bankruptcy protection in June 2025. The department’s Office of Strategic Capital announced the commitment on Wednesday. In […] This story continues at The Next Web
US Agrees to Loan For Chipmaker That Went Bankrupt Last Year
The US Defense Department pledged to issue a conditional loan to Wolfspeed Inc., the chipmaker that filed for bankruptcy last year, for as much as $1.5 billion to support the development of materials that the firm described as key to national security.
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