Wolfspeed Secures $1.5 Billion in Funding for U.S. Expansion, Stock Up 21%

Oct 15, 2024, 12:44 PM

Wolfspeed Inc., a manufacturer of silicon carbide chips primarily used in electric vehicles, has secured a total of $1.5 billion in funding. The funding includes $750 million from the U.S. CHIPS Act and an additional $750 million from an investment group led by Apollo Global Management. This financial boost will support Wolfspeed's expansion plans in North Carolina and New York, aiming to enhance its manufacturing capabilities and compete more effectively in the global market. The funding is expected to accelerate the production of advanced computer chips and contribute to the growth of the U.S. semiconductor industry. CEO Gregg Lowe stated that the funding package supports the completion of the world's largest and most advanced 200-millimeter silicon carbide manufacturing footprint located in the U.S. Additionally, Wolfspeed expects up to $2.5 billion in further capital. As a result, Wolfspeed's stock has soared, with pre-market trading showing a 21% increase.