Pentagon offers Wolfspeed a $1.5bn loan for a stake of up to 7.5%
The US Department of War has offered chipmaker Wolfspeed a conditional loan of up to $1.5bn over 30 years. In return, Wolfspeed would give the department warrants to buy up to 7.5% of the company. Wolfspeed filed for bankruptcy protection in June 2025.
The department’s Office of Strategic Capital announced the commitment on Wednesday. In its own announcement, Wolfspeed said the money would support US production of silicon carbide materials and power devices, with a focus on national security.
“SiC and GaN have critical national security applications,” said Robert Feurle, Wolfspeed’s chief executive.
Wolfspeed shares rose 25% to $39.22 in after-hours trading on Wednesday, Bloomberg reported.
What the money is for
Silicon carbide (SiC) and gallium nitride (GaN) are chip materials used for high power and radio frequency work. Wolfspeed sells them for defence, aerospace, AI and critical infrastructure, according to the company. It has plants in North...
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