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Wolfspeed secures $1.5 billion conditional loan commitment from US defense department

Marcus Chen
Marcus Chen
Managing Editor · Wednesday, October 7, 2026 at 9:08 PM · 1 min read
Wolfspeed secures $1.5 billion conditional loan commitment from US defense department — KFGO, Hillsboro Technology news
Image: KFGO

Oct 7 (Reuters) Chipmaker Wolfspeed said on Wednesday it has received a conditional loan commitment for ​up to $1.5 billion from the ‌US Department of Defense to expand domestic production of silicon carbide materials and power devices, sending its shares surging 27% in ‌extended ​trading. • Wolfspeed makes chips ⁠using silicon carbide, ⁠which are more energy-efficient and used in applications that require huge amounts of power conversion such as ​electric vehicles, solar inverters and industrial power systems • The company said ⁠the conditional 30-year commitment, ⁠through the defense department s ​Office of Strategic Capital, reflects its efforts ​to optimize its capital structure and ‌improve its financial foundation • It plans to use the financing to upgrade its gallium nitride technology for ⁠next-generation communications infrastructure and electronic warfare systems and develop radiation-hardening capabilities • The funding is ⁠subject ‌to due diligence, definitive agreements,

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