Wolfspeed federal loan commitment could support Marcy chip plant

Wolfspeed will receive a $1.5B, 30-year loan from the U.S. Department of War to boost silicon-carbide semiconductor production, aiming to counter China's market share growth. The investment supports domestic manufacturing and job creation in New York, according to Sen. Charles Schumer and Wolfspeed CEO Robert Feurle.

Applied Digital (APLD) reported $36B in contracted revenue from AI data centers, with Q1 2027 revenue at $341.88M. Wolfspeed (WOLF) saw Q4 revenue of $150M, with AI data center revenue doubling in 2026. APLD is down 15.8% YTD, while WOLF is up 61.7%. Both face execution risks.

The Pentagon announced a $1.5B, 30-year loan to Wolfspeed Inc. to secure domestic production of silicon carbide and gallium nitride semiconductors, critical for F-35 fighters, US Navy destroyers, and missile defense systems. Wolfspeed, emerging from bankruptcy in 2025, is the sole domestic supplier of these wide bandgap semiconductors, which are essential for advanced radar and electronic warfare systems.

Wolfspeed received a conditional $1.5B loan from the US Department of War for 30 years. Funds will support domestic silicon carbide and gallium nitride production for national security. The company must issue warrants for up to 7.5% equity if agreements are signed.

Wolfspeed Inc. received a conditional $1.5 billion, 30-year loan from the U.S. Department of War to boost semiconductor manufacturing. The funds will upgrade GaN epitaxy and develop radiation-hardened SiC and GaN products for national security. The loan is subject to final agreements and government approvals, with the DoW potentially acquiring up to 7.5% equity. Wolfspeed warns there's no guarantee the financing will go through.

Wolfspeed (WOLF) shares fell 3% to $30.30 despite a $1.5B U.S. loan commitment for semiconductor production. The stock traded between $13.48 and $80.82 over the past year.