U.S. offers Wolfspeed up to $1.5 billion in conditional semiconductor financing

The U.S. Department of War offered Wolfspeed a conditional, 30-year loan facility of up to $1.5 billion to expand domestic silicon carbide and gallium nitride manufacturing and development for defense and aerospace applications. The proposed deal also includes warrants for the department to acquire up to 7.5% of Wolfspeed’s fully diluted equity; Wolfspeed says the transaction remains subject to due diligence, approvals and final agreements.

Why it matters. The proposed financing could support Wolfspeed’s U.S. production of semiconductor materials used in defense systems, while tying public funding to a potential government equity stake.