Wolfspeed gets $1.5b loan from US DoW
Wolfspeed has received a 30 year conditional loan commitment letter from the US Department of War for up to $1.5b of long-term financing to support the domestic development and production of SiC materials and wide bandgap power devices, with an additional focus on US national security applications.
Beyond supporting the domestic wide bandgap supply chain the $1.5b commitment will advance key DoW initiatives. Specifically, Wolfspeed plans to use the financing to upgrade its GaN epitaxy capabilities for next generation communications infrastructure and electronic warfare systems and develop radiation-hardening capabilities for its current SiC and future GaN products.
“SiC and GaN have critical national security applications,” said Robert Feurle, CEO of Wolfspeed. “With this financing, the company would be well positioned to not only continue to serve the DoW but also expand its capabilities for the benefit of US national security as a whole.”
Wolfspeed believes that SiC and related semiconductor technologies are critical to next generation power and RF applications across defence, aerospace, AI, critical infrastructure and other strategic commercial markets.
Feurle continued, “We believe the scale and 30-year tenor of this conditional commitment reflects the long-term importance of the technology and manufacturing capabilities Wolfspeed has built in the United States. This financing would strengthen our continued advancement of SiC materials and wide bandgap power devices, reinforcing our efforts to build a more resilient US semiconductor and defence industrial base.”
