Pentagon Offers Wolfspeed Up to $1.5 Billion in Conditional Financing for Domestic Silicon Carbide Chips

Wolfspeed received a conditional 30-year commitment for up to $1.5 billion in U.S. government financing to support domestic silicon carbide semiconductor production, with the Pentagon identified as the source of the loan commitment. The deal includes a provision allowing the government to acquire up to 7.5% of the company through warrants, giving it the right to buy shares at a set price.

Shares surged more than 12.5% in pre-market trading on October 8, gapping up alongside a broader rally in semiconductor and technology names. The stock spiked to $36 intraday before fading back to roughly flat, reflecting investor caution about the conditional nature of the agreement. The financing remains subject to further requirements and has not yet been finalized.