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Wolfspeed Secures $2.5B in Funding from CHIPS Act and Apollo, Stock Soars 35%

Oct 15, 2024, 12:25 PM

Wolfspeed Inc., a North Carolina-based manufacturer of silicon carbide chips primarily used in electric vehicles, 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, totaling $1.5 billion, will support the expansion of Wolfspeed's manufacturing facilities in North Carolina and New York. Additionally, the company expects up to $2.5 billion in total capital, including cash tax refunds. The Biden administration's support aims to bolster Wolfspeed's production capabilities and enhance its competitive position against global rivals, particularly in China. The announcement led to a significant 35% increase in Wolfspeed's stock price in pre-market trading, with the stock soaring 21% post-announcement. CEO Gregg Lowe stated that the capital will accelerate the company's production plans and contribute to long-term growth in the U.S. semiconductor industry.