Wolfspeed signed a $1.5B conditional loan with the DOD Office of Strategic Capital. The funds will upgrade gallium nitride epitaxy for communications and electronic warfare. It will also develop radiation-resistant silicon carbide and gallium nitride products. Production will expand at Mohawk Valley Fab in New York and Research Triangle Park in North Carolina. The loan supports onshoring low-voltage and high-voltage power device production. The first installment is $600M of a total split into up to four payments. The loan has a 30-year term and a 36-month draw period. DOD also committed $150M to PsyQuantum for quantum manufacturing. Both loans aim to secure domestic wide-bandgap semiconductor supply chains.
What changed
Wolfspeed relied on existing capacity and private funding for expansion.
What it unlocks
Expanding gallium nitride and silicon carbide production for defense and commercial use.
- $1.5B conditional loan
- $150M loan to PsyQuantum
- $600M first installment
- 30-year maturity
What you need to act on it
- conditional loan approval
- DOD Office of Strategic Capital finalization
Sources