Wolfspeed Gets 30-Year, $1.5 Billion Loan Commitment From Defense Department
By Elias Schisgall
Wolfspeed said the Defense Department conditionally agreed to provide up to $1.5 billion in long-term financing to support the U.S. development and production of silicon carbide materials and wide bandgap power devices.
The company said Wednesday that it received a conditional loan commitment letter from the Defense Department's Office of Strategic Capital outlining the 30-year financing commitment. As the agreements are finalized, Wolfspeed said it expects to issue the department warrants to buy up to 7.5% of its stock.
Shares of Wolfspeed surged 25% to $39.20 in after-hours trading on Wednesday. The stock closed down 1.5% at $31.37, up 80% year-to-date.
The financing will also be used to upgrade Wolfspeed's gallium nitride epitaxy capabilities, the company said.
"SiC and GaN have critical national security applications," Chief Executive Officer Robert Feurle said. "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."
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
October 07, 2026 17:10 ET (21:10 GMT)
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