Wolfspeed gets conditional $1.5 billion Defense Department loan

By Elias Schisgall Wolfspeed said the Defense Department conditionally agreed to provide up to $1.5 billion in long-term financing to support the U.S. development and production of silicon carbide materials and wide bandgap power devices. The company said Wednesday that it received a conditional loan commitment letter from the Defense Department's Office of Strategic Capital outlining the 30-year financing commitment. As the agreements are finalized, Wolfspeed said it expects to issue the department warrants to buy up to 7.5% of its stock. Shares of Wolfspeed surged 25% to $39.20 in after-hours trading on Wednesday. The stock closed down 1.5% at $31.37, up 80% year-to-date. The financing will also be used to upgrade Wolfspeed's gallium nitride epitaxy capabilities, the company said. "SiC and GaN have critical national security applications," Chief Executive Officer Robert Feurle said. "With this financing, the company would be well positioned to not only continue to serve the DoW but also expand its capabilities for the benefit of U.S. national security as a whole." Write to Elias Schisgall at elias.schisgall@wsj.com (END) Dow Jones Newswires October 07, 2026 16:55 ET (20:55 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.