Wolfspeed reveals $750M in proposed funding from U.S. CHIPS Act

The company is a global leader in silicon carbide technology

Image credit: Microsoft Copilot /DALL.E and Canva

Wolfspeed today announced a proposed $750 million in funding from the U.S. CHIPS and Science Act to support expansions in North Carolina and New York, alongside an additional $750 million from a consortium led by Apollo, The Baupost Group, and others.

With $1 billion in expected tax refunds, Wolfspeed anticipates $2.5 billion in total capital.

This funding could bolster Wolfspeed’s global leadership in silicon carbide technology, supporting the production of chips essential for electric vehicles, AI data centers, and clean energy.

Silicon carbide (SiC), also known as carborundum, is a hard chemical compound made of silicon and carbon. It's a wide bandgap semiconductor that occurs naturally as the rare mineral moissanite, but it's mostly produced synthetically. Its semiconductor properties make it valuable in electronic devices, especially in high-power and high-temperature applications.

The U.S. CHIPS and Science Act is a significant piece of legislation signed into law on August 9, 2022. It combines two bipartisan bills: the Endless Frontier Act and the CHIPS for America Act. The primary goals of the act are to boost domestic research and manufacturing of semiconductors and to strengthen the U.S. position in high-tech industries.