Wolfspeed Announces Conditional 30-Year, $1.5 Billion Loan Commitment from U.S. Department of War to Advance Domestic Wide Bandgap Supply Chain
Oct 7, 2026 4:05 PM Eastern Daylight Time
Represents another significant step in Wolfspeed’s long-term financing and plan to strengthen its domestic wide bandgap semiconductor technology platform
DURHAM, N.C.--( BUSINESS WIRE )-- Wolfspeed, Inc. (NYSE: WOLF) today announced it has received a conditional loan commitment letter from the U.S. Department of War (“DoW”), through its Office of Strategic Capital (“OSC”), for up to $1.5 billion of long-term financing to support the domestic development and production of silicon carbide (SiC) materials and wide bandgap power devices, with an additional focus on U.S. national security applications.
Beyond supporting the domestic wide bandgap supply chain, which is critical to the U.S. defense and economic industrial base, the $1.5 billion commitment will advance key DoW initiatives. Specifically, Wolfspeed plans to use the financing to, without limitation, 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.
“SiC and GaN have critical national security applications,” said Robert Feurle, Chief Executive Officer 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 U.S. national security as a whole.”
Wolfspeed believes that SiC and related semiconductor technologies are critical to next generation power and radio-frequency applications across defense, aerospace, AI, critical infrastructure and other strategic commercial markets. Building on Wolfspeed’s differentiated silicon carbide technology and intellectual property, and domestic manufacturing footprint in North Carolina, New York and Arkansas, the potential financing is expected to advance a multi-year program to:
Strengthen Wolfspeed’s domestic silicon carbide materials and power-device leadership;
Establish, expand, and/or onshore domestic low-voltage and/or high-voltage GaN power device production capabilities;
Advance GaN-on-SiC radio-frequency epitaxial wafer technology; and
Develop domestic radiation-hardening capabilities.
Mr. 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 silicon carbide materials and wide bandgap power devices, reinforcing our efforts to build a more resilient U.S. semiconductor and defense industrial base.”
Transaction Details
The conditional commitment letter contemplates a senior secured delayed-draw term loan facility of up to $1.5 billion. “This conditional 30-year commitment represents another significant milestone in our ongoing efforts to optimize Wolfspeed’s capital structure and improve our financial foundation,” said Gregor van Issum, Chief Financial Officer of Wolfspeed. “Subject to the satisfaction of diligence, negotiation of definitive agreements, and other financial, legal, and investment conditions, the broader commitment is expected to provide additional long-dated capital to support our strategic priorities, improve financial flexibility, and further position Wolfspeed for long-term value creation.”
In connection with the potential financing and subject to the negotiation and execution of definitive agreements, Wolfspeed would be required to issue to the DoW VWAP-based warrants to purchase, in the aggregate, up to 7.5% of Wolfspeed’s fully diluted equity, with the warrants issuable pro rata as and when financing tranches are funded.
The execution of the definitive agreements and consummation of the potential financing are subject to substantial due diligence and numerous conditions, the negotiation and finalization of agreements, significant closing conditions, governmental authorizations and approvals, appropriations and required third-party consents. There can be no assurance that definitive agreements will be executed or that any financing will be provided. Additional details are available in Wolfspeed’s Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission.
About Wolfspeed, Inc.
Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power some of the world’s most disruptive innovations. As pioneers of silicon carbide, and creators of an advanced semiconductor technology, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Real TM . Learn more at www.wolfspeed.com .
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