Wolfspeed Secures Conditional $1.5 Billion US Commitment for Domestic SiC Production

Wolfspeed has received a conditional commitment for up to $1.5 billion in long-term financing from the US Department of War through its Office of Strategic Capital, as the company looks to strengthen domestic production of silicon carbide and other wide-bandgap semiconductor technologies.

The proposed financing carries a 30-year term and is intended to support the development and manufacture of silicon carbide materials and power devices in the United States, with particular emphasis on technologies considered important for national security.

Wolfspeed operates manufacturing facilities across North Carolina, New York and Arkansas, giving the company a domestic production base spanning silicon carbide materials and semiconductor devices.

Funding to Support SiC and GaN Expansion

Under the proposed programme, Wolfspeed plans to strengthen its existing silicon carbide materials and power semiconductor operations while also expanding US manufacturing capabilities for gallium nitride, or GaN, power devices.

The company intends to develop both low-voltage and high-voltage GaN production capabilities and advance GaN-on-SiC radio-frequency epitaxial wafer technology.

Part of the financing would also be directed towards upgrading Wolfspeed’s GaN epitaxy capabilities for next-generation communications infrastructure and electronic warfare systems.

The company additionally plans to develop domestic radiation-hardening capabilities for its existing SiC portfolio and future GaN products. Radiation-hardened semiconductors are designed to operate reliably in environments exposed to high levels of radiation, making them relevant to defence, aerospace and space applications.

Wide-Bandgap Semiconductors Gain Strategic Importance

Wolfspeed sees silicon carbide and GaN becoming increasingly important across defence, aerospace, artificial intelligence infrastructure, critical infrastructure and other power-intensive applications.

Compared with conventional silicon devices, wide-bandgap semiconductor technologies can support higher voltages, temperatures and switching frequencies, making them increasingly attractive for applications where efficient power conversion is critical.

Robert Feurle, Chief Executive Officer of Wolfspeed, said the potential financing would allow the company to expand its capabilities while continuing to support US national security requirements.

The agreement also reflects growing government interest in establishing domestic supply chains for semiconductor technologies considered strategically important.

Proposed Deal Includes Equity Warrants

The conditional commitment envisages a senior secured delayed-draw term loan facility of up to $1.5 billion.

If definitive agreements are completed and financing is provided, Wolfspeed would also be required to issue warrants to the US government based on the volume-weighted average price of its shares.

Those warrants could represent, in aggregate, as much as 7.5% of Wolfspeed’s fully diluted equity, with the warrants issued proportionally as individual financing tranches are funded.

Gregor van Issum, Chief Financial Officer of Wolfspeed, said the 30-year commitment could provide the company with longer-dated capital while improving financial flexibility and supporting its strategic priorities.

The transaction has not yet reached final approval. Funding remains subject to due diligence, negotiation and execution of definitive agreements, government authorisations, financial and legal conditions, appropriations and required third-party approvals.

Wolfspeed has therefore cautioned that there is no guarantee the final agreements will be completed or that the full financing amount will ultimately be provided.

Financing Comes as Wolfspeed Expands its SiC Technology Portfolio

The financing proposal comes as Wolfspeed continues to develop its silicon carbide manufacturing and product portfolio.

In September 2026, the company launched a Premium 200 mm n-type SiC substrate, designed to improve semiconductor manufacturing yields through lower defect levels and improved wafer stability.

Earlier in 2026, Wolfspeed also demonstrated a 300 mm single-crystal silicon carbide wafer, signalling its longer-term ambitions to scale SiC manufacturing beyond the industry's emerging 200 mm production base.

The company is also targeting new power requirements created by AI data centres, industrial electrification, aerospace systems and other high-power applications.

For the wider semiconductor industry, the proposed financing underlines how silicon carbide and GaN are increasingly being treated not only as commercial power semiconductor technologies, but also as strategic components of national semiconductor and defence supply chains.