Wolfspeed secures $1.5B DoW loan for GaN and SiC expansion
Wolfspeed received a conditional $1.5 billion loan from the Department of War's Office of Strategic Capital to expand domestic production of silicon carbide and gallium nitride semiconductors for defense and commercial use.
Wolfspeed has secured a conditional $1.5 billion loan from the U.S. Department of War. The financing from the DoW’s Office of Strategic Capital will support the expansion of domestic silicon carbide and gallium nitride semiconductor capabilities for defense applications and critical infrastructure.
The conditional loan commitment letter reflects the strategic importance of secure, domestic supply chains for these advanced materials. Wolfspeed plans to combine the proposed loan with private capital. The money will strengthen the company's domestic silicon carbide materials and power-device leadership. It will advance key DoW initiatives focused on U.S. national security.
Technology and applications
The funds will advance radiation-hardened wide bandgap materials for high-power electronic warfare, propulsion, and radar systems. Wolfspeed plans to use the financing to upgrade gallium nitride epitaxy capabilities for new communications infrastructure and electronic warfare systems. It also aims to establish, expand, or onshore domestic production for both low-voltage and high-voltage GaN power devices.
Development of ionizing radiation-resistant capabilities for current silicon carbide and future gallium nitride products is a key goal. These materials are critical for military systems. According to DARPA research, wide-bandgap semiconductors can rapidly move electrons and handle large electric fields. This drives their ability to provide more radiofrequency power.
GaN has a wider bandgap than older materials like gallium arsenide. This allows GaN to operate at higher voltages and powers for microsystems, enabling operation at levels that would ruin other devices. The products are used in a range of defense and commercial applications.
These materials are expected to play an increasingly important role across defense, artificial intelligence, and critical infrastructure.
Facilities and geographic footprint
Investment will expand production at Wolfspeed’s existing sites in North Carolina, New York, and Arkansas. The loan builds on the company's technology, intellectual property, and manufacturing footprint in those states. Plans include adding production volume at the Mohawk Valley Fab in Marcy, New York, and at the Research Triangle Park location in Durham, North Carolina.
Wolfspeed is a vertically integrated U.S. manufacturer. It produces silicon carbide wafers, SiC power devices, and gallium nitride-on-SiC wafers.
Leadership and broader context
Executive statements show the loan’s role in long-term domestic semiconductor leadership. Brad Kohn, Wolfspeed’s EVP chief legal and global affairs officer, stated that the commitment reflects the company's strong market position and the strategic importance of secure supply chains. Robert Feurle added that silicon carbide and related technologies are critical to next-generation power and radio-frequency applications across defense, aerospace, AI, and critical infrastructure.
Feurle also noted that the scale and 30-year tenor of the conditional commitment reflects the long-term importance of Wolfspeed's U.S.-built technology and manufacturing capabilities. The loan has a 30-year maturity and a 36-month commitment period. During that period, Wolfspeed can tap into up to four payment installments.
The proposed loan consists of the following installments:
| Installment | Amount |
|---|---|
| Initial Payment | $600 million |
| Remaining Payments | $200 million to $400 million each |
The conditional loan commitment specifies additional steps Wolfspeed must complete before financial close. These include satisfying various financial, legal, technical, investment, and due diligence requirements.
Related DoW initiatives
The Department of War's Office of Strategic Capital announced another conditional loan on the same day. The agency committed $150 million to PsyQuantum. This loan boosts that company's domestic advanced manufacturing and prototyping capabilities for quantum computing.
The PsyQuantum loan is part of a broader $350 million DoW quantum computing initiative, also announced that Thursday. The program will be managed through the Office of the Undersecretary of Defense for Research and Engineering. It expects quantum-enabled applications in fields like chemistry and materials science.
According to a DoD press release, the pending loan and private investment would help enhance the U.S. supply chain for wide bandgap materials and power devices. Wolfspeed must satisfy financial, legal, technical, investment, and due diligence requirements before financial close.
