The Department of War's Office of Strategic Capital (OSC) announced today a $75 million conditional loan commitment with Halo Industries, Inc., to scale production of its innovative Silicon Carbide (SiC) semiconductor wafers. The OSC investment crowds-in an additional $75 million in private capital and supports Halo's domestic manufacturing expansion to secure critical microelectronics supply chains.
OSC's conditional loan commitment to Halo advances President Donald J. Trump's call to revitalize the American defense industrial base, counter unfair foreign trade practices, and ensure critical technologies are made domestically.
Halo specializes in using proprietary, cutting-edge laser manufacturing technology to slice SiC ingots into wafers. This novel approach fundamentally disrupts legacy mechanical diamond-saw processes by significantly reducing material waste, improving throughput up to tenfold, and driving down production costs. The company's U.S. manufacturing operations in Santa Clara, California would onshore production of essential components, which are vital for high-voltage defense applications like advanced radar, electronic warfare, hypersonics, and directed energy weapons.
"Halo's new laser wafering technology will help establish cost-effective domestic supply chains, enabling the United States to compete globally and counteracting price dumping in the silicon carbide market. We're pleased to support Halo's domestic expansion, which will strengthen the semiconductor supply chain 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.
Due to heavy state subsidies aiding foreign competitors, domestic producers of SiC wafers have faced intense pressure, leading to increased reliance on overseas supply chains. OSC's conditional financing would enable Halo to expand U.S. manufacturing operations, approach cost-parity with foreign competitors, and ultimately reduce reliance on foreign semiconductor materials.
"By crowding in private capital alongside our $75 million conditional commitment, we're accelerating the onshoring of next-generation semiconductor wafering technology," said Jordan B. Sebold, Senior Managing Director (Investments) with OSC. "This transaction is an important first step in strengthening the domestic supply chain of SiC wafers, and SiC wafers are foundational to American high-voltage power electronics, AI infrastructure, and national security capabilities."
"Secure access to advanced semiconductor materials is essential for national defense. By supporting domestic production of high-performance SiC wafers and unique domestic laser manufacturing capabilities, we're addressing a critical industrial base vulnerability and ensuring our warfighters have access to the power electronics and sensing capabilities they need," said Matthew Haberlach, Senior Vice President (Investments) with OSC.
The conditional loan commitment specifies additional steps Halo must complete before financial close, including satisfying various financial, legal, technical, investment, due diligence, and other requirements.
"The Office of Strategic Capital's financing is bringing next-generation manufacturing back to the United States, guaranteeing we control our own technological destiny. Securing America's microelectronics supply chain is non-negotiable for our national defense," said Emil Michael, Under Secretary of War for Research and Engineering.
