Wolfspeed receives conditional US defense loan commitment of up to $1.5 billion

The Department of War says its Office of Strategic Capital announced a conditional loan commitment of up to $1.5 billion to Wolfspeed, aimed at strengthening US supplies of semiconductor materials and devices for military and commercial uses. Wolfspeed must meet financial, legal, technical, investment and due-diligence requirements before the loan closes. Reuters reports that, under the proposed terms, Wolfspeed would issue warrants allowing the department to purchase up to 7.5% of its fully diluted equity.