Wolfspeed Secures $1.5B from Apollo, CHIPS Act for U.S. Silicon Carbide Expansion

Oct 15, 2024, 09:56 AM

Wolfspeed Inc., a manufacturer of chips used primarily in electric vehicles, has announced it will receive $750 million in proposed funding from the U.S. CHIPS Act and an additional $750 million from an investment group led by Apollo Global Management. This funding will support the expansion of Wolfspeed's silicon carbide manufacturing capabilities in the United States, including the construction of new $6B+ factories in North Carolina and New York. The Biden-Harris Administration, through NIST, has outlined preliminary terms with Wolfspeed to solidify U.S. technological leadership in silicon carbide manufacturing. Following the announcement, Wolfspeed's stock soared, with gains reported as high as 35%, including an initial surge of 21%.