The Department of War's Office of Strategic Capital (OSC) announced today a $1.5 billion conditional loan commitment to Wolfspeed, Inc., a vertically integrated U.S. manufacturer of silicon carbide (SiC) wafers, SiC power devices, and gallium nitride (GaN)-on-SiC wafers. The proposed loan, combined with private capital, would help strengthen the U.S. supply chain for wide bandgap materials and power devices, which have critical military and commercial applications.
The contemplated financing builds on President Trump's mandate to accelerate the onshoring of semiconductor production and bolster the associated supply chain. SiC and GaN are advanced wide bandgap semiconductor materials used in next-generation power and radio frequency applications across defense, Super Intelligence (SI), critical infrastructure, and other strategically important areas.
"Securing U.S. military and economic superiority requires bold domestic investments in critical dual-use capabilities. By strengthening our nation's wide bandgap industrial base, the contemplated transaction would achieve important national security objectives while advancing U.S. supremacy in the SI era," said Peter B. Zuckerman, Senior Managing Director at OSC.
"OSC's proposed transaction directly aligns with President Donald J. Trump's strategy to enhance domestic semiconductor manufacturing by supporting the development and production of wide bandgap capabilities in the United States," said David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg. "The contemplated investment advances U.S. military and economic security by helping build a secure, reliable domestic supply chain for SiC and GaN that benefits the Department of War, the U.S. defense industrial base, and the broader U.S. economy."
With this proposed strategic financing, OSC would help the company strengthen domestic access to wide bandgap materials and devices used in high-performance propulsion systems, directed energy weapons, drones, electronic warfare systems, radars, and missile defense systems. The financing would also help advance U.S. economic security as SiC and GaN are expected to play an increasingly important role in the SI revolution.
"The Office of Strategic Capital is advancing President Trump's priority of supporting the domestic semiconductor supply chain to achieve American dominance in the era of Super Intelligence," said Emil Michael, Under Secretary of War for Research and Engineering.
The conditional loan commitment specifies additional steps Wolfspeed must complete before financial close, including satisfying various financial, legal, technical, investment, and due diligence requirements.
