October 8, 2026 / SemiMedia / — Wolfspeed has received a conditional commitment for up to $1.5 billion in long-term U.S. government financing to expand domestic silicon carbide materials, wide-bandgap power devices and related gallium nitride technologies. Wolfspeed shares jumped about 27% in extended trading following the announcement.

The financing carries a term of up to 30 years and is structured as a senior secured delayed-draw term loan facility. Wolfspeed said the capital would support domestic production of SiC materials and power devices while expanding technologies used in defense, aerospace, AI infrastructure and other strategic applications.

The company also plans to upgrade its GaN epitaxy capabilities for next-generation communications infrastructure and electronic warfare systems. Additional priorities include GaN-on-SiC RF epitaxial wafers, domestic low- and high-voltage GaN power device production, and radiation-hardened capabilities for current SiC and future GaN products.

Wolfspeed operates a U.S. manufacturing footprint spanning North Carolina, New York and Arkansas. The company sees SiC and GaN as increasingly important for high-efficiency power conversion, high-frequency communications and high-reliability electronic systems.

The financing is also intended to strengthen Wolfspeed's capital structure and provide longer-duration funding for its manufacturing and technology roadmap. Under the contemplated terms, Wolfspeed would issue warrants to the U.S. government as financing tranches are funded, representing up to 7.5% of the company's fully diluted equity.

The $1.5 billion commitment remains conditional and has not yet been fully funded. Completion is subject to due diligence, negotiation of definitive agreements, government approvals and other financial and legal conditions, meaning the final amount and timing could still change.