US Department of Energy awarded Wolfspeed a $1.5B conditional loan to expand domestic SiC and GaN semiconductor production, supporting defense supply chain resilience.
Chipmaker Wolfspeed has received a conditional 30-year loan commitment for up to $1.5 billion from the US Department of Defense.
The funds would support US-based development and production of silicon carbide (SiC) materials and wide-bandgap power devices, with an additional focus on US national security applications. The company will also use the financing to upgrade its gallium nitride (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.
The loan agreement is subject to substantial due diligence and numerous conditions, including negotiation and finalization of agreements, significant closing conditions, governmental authorizations and approvals, appropriations, and required third-party consents. Wolfspeed will also be required to issue the DoD VWAP-based warrants to purchase up to 7.5 percent of Wolfspeed's fully diluted equity, with warrants issuable pro rata as financing tranches are funded.
Silicon carbide is a synthetically produced crystalline compound of silicon and carbon that offers several advantages over conventional silicon for power applications. The material provides better thermal conductivity, higher switching speeds, and lower dissipation, making it particularly suitable for manufacturing high-voltage power devices.
Gallium nitride (GaN) is a wide-bandgap material capable of handling higher power levels than silicon, enabling GaN-based chips to be more efficient and durable than their silicon counterparts.
"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 DoD but also expand its capabilities for the benefit of US national security as a whole."
"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 silicon carbide materials and wide-bandgap power devices, reinforcing our efforts to build a more resilient US semiconductor and defense industrial base."
Founded in North Carolina in 1987, Wolfspeed is the world's leading manufacturer of silicon carbide wafers and devices. In recent years, the company has faced reduced demand for its 150mm wafers. In January 2025, it put its site near Dallas, Texas, up for sale for an undisclosed price. The company filed for Chapter 11 bankruptcy in June 2025 as part of a restructuring agreement with its creditors, completing its financial restructuring in September 2025.