Wolfspeed receives a conditional loan commitment of 1.5 billions dollars from the U.S. Department of Defense
路透社2026/10/07 21:11Reuters, October 7 — Chip manufacturer Wolfspeed (WOLF.N) announced on Wednesday that it has received a conditional loan commitment of up to 1.5 billions USD from the U.S. Department of Defense (DoD) to expand domestic production of silicon carbide materials and power devices. Boosted by this news, its stock price surged by 27% in after-hours trading. Wolfspeed uses silicon carbide to produce chips, which are more energy efficient and widely utilized in electric vehicles, solar inverters, and industrial power systems that require large amounts of power conversion. The company stated that this 30-year conditional loan commitment, provided through the DoD’s Office of Strategic Capital, demonstrates efforts to optimize its capital structure and solidify its financial foundation. Wolfspeed plans to use the funds to upgrade its gallium nitride technology to meet the demands of next-generation communication infrastructure and electronic warfare systems, as well as to develop radiation-resistant capabilities. The financing is subject to due diligence, the signing of definitive agreements, government approvals, and other conditions. According to proposed terms, Wolfspeed will be required to issue warrants to the DoD, allowing it to purchase up to 7.5% of Wolfspeed’s fully diluted equity. (For convenience of non-English readers, Reuters provides automated translations of its reports in multiple languages. Since automated translations may be inaccurate or lack necessary context, Reuters does not guarantee the accuracy of these translations and provides them for reader convenience only. Reuters bears no responsibility for any damage or loss resulting from the use of such features.)
Reuters, October 7 - Chipmaker Wolfspeed (WOLF.N) said on Wednesday it has secured a conditional loan commitment of up to $1.5 billion from the U.S. Department of Defense to expand domestic production of silicon carbide materials and power devices. Boosted by this news, its share price soared 27% in after-hours trading.
Wolfspeed uses silicon carbide to manufacture chips. These chips are more energy-efficient and are widely used in electric vehicles, solar inverters, and industrial power systems that require large amounts of power conversion.
The company stated that the 30-year conditional loan commitment, provided by the Strategic Capital Office of the U.S. Department of Defense, reflects its efforts to optimize capital structure and strengthen financial fundamentals.
The company plans to use this funding to upgrade its gallium nitride technology to meet the needs of next-generation communications infrastructure and electronic warfare systems, and to develop radiation resistance capabilities.
This financing is still subject to due diligence, signing of final agreements, government approval, and other conditions.
According to the proposed terms, Wolfspeed will be required to issue warrants to the Department of Defense, allowing it to purchase up to 7.5% of Wolfspeed's fully diluted equity.
(To facilitate non-English speakers, Reuters provides its reporting automatically translated into several other languages. As automated translations may contain errors or lack context, Reuters does not guarantee the accuracy of the automated translation and provides it solely for reader convenience. Reuters accepts no liability for any damage or loss caused by use of the automated translation function.)
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