US Department of War offers Wolfspeed $1.5 billion loan
Silicon carbide maker Wolfspeed could receive up to USD 1.5 billion in 30-year financing from the US Department of War. In return, the department would get warrants for up to 7.5% of the company.
Wolfspeed has received a conditional loan commitment letter from the Department of War’s Office of Strategic Capital for a senior secured delayed-draw term loan of up to USD 1.5 billion, according to a press release from the company. The loan would run for 30 years and support domestic development and production of silicon carbide (SiC) materials and wide bandgap power devices, with a particular focus on national security applications.
The money is not only meant for the company’s existing SiC operations. Wolfspeed plans to use part of it to upgrade its gallium nitride (GaN) epitaxy capabilities for next-generation communications infrastructure and electronic warfare systems, and to establish or onshore GaN power device production in the US, at low voltage, high voltage or both. The company also plans to advance its GaN-on-SiC epitaxial wafers for RF applications and to develop radiation-hardened versions of its current SiC and future GaN products. Wolfspeed currently has manufacturing in North Carolina, New York and Arkansas.
“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 DoW but also expand its capabilities for the benefit of U.S. national security as a whole.”
The financing comes with conditions. If the definitive agreements are signed, Wolfspeed would have to issue warrants to the Department of War to buy up to 7.5% of the company’s fully diluted equity.
CFO Gregor van Issum describes the commitment as another step in the work to optimise Wolfspeed’s capital structure and strengthen its financial foundation. Wolfspeed emerged from a Chapter 11 reorganisation in 2025, which cut its debt substantially.
