Wolfspeed has signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. Under the agreement, Wolfspeed will receive up to $750 million in proposed direct funding under the CHIPS and Science Act. The company, which specializes in silicon carbide technologies, will receive an extra $750 million investment from Apollo, The Baupost Group, Fidelity Management & Research Company, and Capital Group. Additionally, Wolfspeed is hoping to receive $1 billion of cash tax refunds from the advanced manufacturing tax credit under the CHIPS and Science Act (section 48D).   

Wolfspeed plans to use the funding to complete its multi-billion-dollar greenfield U.S. capacity expansion plan. The money would also be used to enhance the company’s long-term growth plans and bolster domestic production of silicon carbide.  

What people are saying

In a recent quote, Wolfspeed CEO Gregg Lowe said, “To reach this milestone under the U.S. CHIPS and Science Act is an incredible achievement in Wolfspeed’s long-term growth strategy, and we believe today’s announcement is a testament to the market-leading quality of Wolfspeed products and significance of Wolfspeed to broader U.S. economic and national security interests. This support galvanizes our ability to expand domestic manufacturing, accelerate innovation in next-generation semiconductor technology, and meet the increasing global demand for silicon carbide. As a key player in the semiconductor industry, this proposed investment will enable us to solidify our leadership position with a first-of-its-kind 200mm silicon carbide manufacturing footprint in upstate New York and central North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain. It’s not just about growth for Wolfspeed—it’s about driving technological advancement that powers the future.” 

U.S. Secretary of Commerce Gina Raimondo added, “Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies. Because of the Biden-Harris Administration’s CHIPS and Science Act, the United States is building and fortifying our semiconductor manufacturing capabilities to serve our economic and national security interests while creating jobs and economic opportunities for communities across the country.” 

Manufacturers receiving funds from the CHIPS Act

HP to receive $50 million from the CHIPS Act to modernize Oregon facility
The facility is part of HP’s “lab-to-fab” ecosystem, which covers everything from R&D to commercial manufacturing.

Texas Instruments receives $1.6 billion from CHIPS Act to support wafer fab facilities in Texas and Utah 
TI also hopes to receive an additional $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit.

Rocket Lab receives $23.9 million from CHIPS Act to upgrade New Mexico facility 
The company will also receive addition financial assistance and incentives from New Mexico totaling $25.5 million.

Investing in American manufacturing in 2024

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.