Wolfspeed secures $1.5 billion conditional loan commitment from US defense department – Central Oregon Daily

Wolfspeed secures $1.5 billion conditional loan commitment from US defense department  Central Oregon Daily

Oct 7 (Reuters) – Chipmaker Wolfspeed said on Wednesday it has received a conditional loan commitment for up to $1.5 billion from the US Department of Defense to expand domestic U.S. power chip maker Wolfspeed’s silicon carbide 200mm wafer is seen on display at Wolfspeed’s Mohawk Valley Fab in Marcy, New York, U.S., April 2022. Courtesy of Wolfspeed/Handout via REUTERS/File Photo Oct 7 (Reuters) – Chipmaker Wolfspeed said on Wednesday it has received a conditional loan commitment for up to $1.5 billion from the US Department of Defense to expand domestic production of silicon carbide materials and power devices, sending its shares surging 27% in extended trading. • Wolfspeed makes

chips using silicon carbide, which are more energy-efficient and used in applications that require huge amounts of power conversion such as electric vehicles, solar inverters and industrial power systems • The company said the conditional 30-year commitment, through the defense department's Office of Strategic Capital, reflects its efforts to optimize its capital structure and improve its financial foundation • It plans to use the financing to upgrade its gallium nitride technology for next-generation communications infrastructure and electronic warfare systems and develop radiation-hardening capabilities • The funding is subject to due diligence, definitive agreements, government approvals and other conditions • Under the proposed terms, Wolfspeed would be required to issue to