Wolfspeed has a conditional offer of a US government loan of up to $1.5bn for silicon carbide and GaN production

Wolfspeed, the North Carolina maker of silicon carbide wafers and power chips, said on Wednesday 7 October that it had received a conditional commitment letter from the US Department of War's Office of Strategic Capital for a loan of up to $1.5 billion.

The loan is expected to run for 30 years and would be drawn in up to four tranches over three years. Wolfspeed said in a filing to the US Securities and Exchange Commission that the first $600 million would refinance its first-lien secured notes due 2030 and cover transaction costs. The remaining $900 million, in tranches of $200 million to $400 million, would pay for silicon carbide wafer and power device production in the US, gallium nitride (GaN) power device production, GaN-on-silicon carbide wafers for radio-frequency parts, and radiation-hardened versions of its chips. Wolfspeed has manufacturing sites in North Carolina, New York and Arkansas.

Nothing is agreed yet. The filing says the loan needs due diligence, final agreements, approval and funding from Congress, sign-off from the White House Office of Management and Budget, at least $750 million from other sources such as new shares, and letters of intent or offtake agreements with customers on terms the Office of Strategic Capital accepts. The government would receive warrants for up to 7.5% of Wolfspeed's shares, issued as each tranche is paid out.

"SiC and GaN have critical national security applications," said Robert Feurle, Wolfspeed's chief executive.

Sources: Wolfspeed, press release, 7 October 2026; Wolfspeed, Form 8-K to the US SEC, 7 October 2026.