Wolfspeed receives $1.5B conditional loan from U.S. Department of War

The U.S. Department of War's Office of Strategic Capital (OSC) announced a $1.5 billion conditional loan commitment to Wolfspeed, Inc., a domestic manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices, according to a press release from the department.

The proposed loan is intended to support the U.S. supply chain for wide bandgap semiconductor materials, which are used in defense and commercial applications including propulsion systems, directed energy weapons, drones, electronic warfare systems, radars, and missile defense systems.

The commitment is conditional, requiring Wolfspeed to complete additional financial, legal, technical, investment, and due diligence requirements before the loan can be finalized.

David A. Lorch, Director of the Office of Strategic Capital, stated that the proposed transaction "advances U.S. military and economic security by helping build a secure, reliable domestic supply chain for SiC and GaN that benefits the Department of War, the U.S. defense industrial base, and the broader U.S. economy."

Wolfspeed describes itself as a vertically integrated manufacturer of SiC wafers, SiC power devices, and GaN-on-SiC wafers. SiC and GaN are classified as wide bandgap semiconductor materials used in power and radio frequency applications.

The proposed financing is described as complementary to private capital investment, though specific private investors were not named in the announcement.

You May Also Be Interested In

• Meta's Muse AI to counter China models with subscribers, not ads, Alexandr Wang says - Nikkei
• Rexford Industrial Realty (REXR) files mixed shelf
• Summit Therapeutics and Lunit partner on AI pathology for cancer research