Wolfspeed Shares Jump 15% on $1.5 Billion Pentagon Loan
Updated
Updated · CNBC · Oct 8
Wolfspeed Shares Jump 15% on $1.5 Billion Pentagon Loan
3 articles · Updated · CNBC · Oct 8
Summary
Wolfspeed rose more than 15% in premarket trading after securing a conditional $1.5 billion Defense Department loan tied to domestic chip production.
The proposed financing amounts to a 30-year commitment from the Pentagon, underscoring U.S. efforts to expand onshore semiconductor capacity.
Under the terms, the Defense Department would receive warrants for as much as 7.5% of Wolfspeed, giving the government an equity-linked stake alongside the loan.
The move stood out in mixed premarket trading for chip names, with Broadcom down nearly 2% and TSMC slipping about 1% despite 54.6% September revenue growth.