US Department of War Offers Bankrupt SiC Chipmaker Wolfspeed $1.5B Conditional Loan for 7.5% Equity Warrants

The Office of Strategic Capital at the Department of War has offered Wolfspeed a conditional commitment letter for a senior secured delayed-draw term loan of up to $1.5B — a $600M initial tranche plus three subsequent tranches of $200M–$400M — tied to US silicon carbide power-device capacity critical for data-center electrification and defense. In return, Wolfspeed would issue warrants for up to 7.5% of its equity. Conditions include raising at least $750M in qualifying equity, equitizing convertible notes, and meeting financial covenants after the company's 2025 bankruptcy.