Pentagon offers up to $1.5 billion conditional loan to Wolfspeed for SiC and GaN production
The U.S. Department of War has pledged a conditional loan of up to $1.5 billion to Wolfspeed, Inc., to boost domestic silicon-carbide and gallium-nitride manufacturing for defense and commercial use.
Wolfspeed, Inc. received a conditional commitment from the U.S. Department of War for a loan that could reach $1.5 billion, intended to support U.S. production of silicon-carbide (SiC) materials and wide-bandgap power devices. The financing will be delivered through the Department’s Office of Strategic Capital as a 30-year senior secured facility, with the government receiving warrants to purchase up to 7.5% of the company's equity in tranches.
Wolfspeed intends to channel the capital into enhancing its gallium-nitride epitaxy capacity for communications infrastructure and electronic-warfare applications, as well as developing radiation-hardening capabilities for SiC and future GaN products. CEO Robert Feurle highlighted the strategic importance of SiC and GaN for national security and said the loan will help the firm expand its role for the Department of War. The announcement followed Wolfspeed’s July 2025 bankruptcy filing after manufacturing setbacks, and its shares jumped 25% to $39.22 in after-hours trading.
Why it matters
The loan aims to secure U.S. supply chains for critical defense-grade semiconductor technologies.
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