The US Department of War’s Office of Strategic Capital announced a $1.5B conditional loan to Wolfspeed Inc. The financing aims to strengthen the US supply chain for silicon carbide and gallium nitride used in defence and commercial applications.
The US Department of War’s Office of Strategic Capital (OSC) has announced a USD 1.5 billion conditional loan commitment to semiconductor manufacturer Wolfspeed Inc. to strengthen domestic supplies of advanced semiconductor materials used in defence systems and critical infrastructure.
The proposed financing, combined with private capital, aims to strengthen the US supply chain for silicon carbide (SiC) and gallium nitride (GaN), materials used in advanced power and radio frequency applications across defence and commercial sectors, the department said in a post on X.
Strengthening National Security
The announcement is part of the Trump administration’s efforts to accelerate domestic semiconductor production and reduce vulnerabilities in strategically important supply chains.
“Securing U.S. military and economic superiority requires bold domestic investments in critical dual-use capabilities,” Peter B. Zuckerman, Senior Managing Director at OSC, said, adding that the proposed transaction would support national security objectives while advancing US capabilities in the era of Super Intelligence.
David A. Lorch, Director of OSC and Senior Advisor to Deputy Secretary of War Steve Feinberg, said the proposed investment aligns with President Donald Trump’s strategy to strengthen domestic semiconductor manufacturing.
The financing would help build a “secure, reliable domestic supply chain for SiC and GaN”, benefiting the Department of War, the US defence industrial base and the broader economy, Lorch said.
Advanced Defence Applications
According to the department, the materials are used in high-performance propulsion systems, directed energy weapons, drones, electronic warfare systems, radars and missile defence systems.
Their role in these applications is expected to become increasingly important as demand for advanced computing and other strategically significant technologies grows.
“The Office of Strategic Capital is advancing President Trump’s priority of supporting the domestic semiconductor supply chain to achieve American dominance in the era of Super Intelligence,” Emil Michael, Under Secretary of War for Research and Engineering, said.
Loan Conditions and Details
The proposed loan is intended to support Wolfspeed, a US manufacturer of silicon carbide wafers, silicon carbide power devices and gallium nitride-on-silicon carbide wafers, as the United States seeks to expand domestic production of these materials.
However, the USD 1.5 billion commitment remains conditional. Wolfspeed must complete additional financial, legal, technical and investment requirements, along with due diligence, before the transaction can reach financial close. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)