Lates News

The U.S. Department of Defense has offered chipmaker Wolfspeed (WOLF.N) a conditional senior secured loan commitment of up to $1.5 billion with a 30-year term to support domestic production of silicon carbide materials and wide-bandgap power devices in the United States. Under the terms of the deal, which are still subject to negotiation, Wolfspeed will provide the U.S. Department of Defense with warrants allowing it to purchase up to 7.5% of the company's shares in tranches. Wolfspeed filed for bankruptcy last July due to production problems at a key silicon carbide wafer plant. The company said it will use the funds to expand production of silicon carbide materials and power devices for telecommunications, aerospace and defense applications, and to upgrade its supply capacity for related materials used in military communications systems. Following the announcement, Wolfspeed's shares rose by more than 28% in after-hours trading at one point.