Wolfspeed has secured $1.5 billion in proposed funding, with $750 million from the U.S. CHIPS Act and an additional $750 million from a consortium led by Apollo, Fidelity, Baupost, and Capital Group. The investments will accelerate Wolfspeed’s manufacturing capacity for silicon carbide, a crucial component in electric vehicles (EVs), renewable energy systems, AI data centers, and more. Additionally, Wolfspeed anticipates $1 billion in tax refunds, bringing its total capital to $2.5 billion. This funding supports the company’s U.S. expansion plans in North Carolina and New York.
Wolfspeed pioneered silicon carbide technology and remains the largest global producer, focusing on high-power applications for industries such as clean energy and e-mobility. The company is positioned to strengthen domestic production, aligning with U.S. energy and national security priorities. Silicon carbide, recognized as critical by the Department of Energy and Department of Commerce, is central to the U.S. push for energy efficiency and sustainable technologies.
CEO Gregg Lowe stated, “Today’s announcement strengthens our position as a leader in silicon carbide manufacturing. It not only supports our expansion but also drives innovation, helping to meet the growing global demand for energy-efficient technologies across multiple industries.”
Key points:
• $750M proposed funding from U.S. CHIPS Act
• Additional $750M from investment consortium led by Apollo, Fidelity, Baupost, and Capital Group
• Anticipated $1B in IRS tax refunds
• Total $2.5B in capital for U.S. expansion in North Carolina and New York
• Silicon carbide production to support EVs, AI, renewable energy, and more
