Receiving a major boost for its recovery, Wolfspeed gains a seven hundred million dollar tax refund under the CHIPS Act.
Wolfspeed has received $698.6 million in cash tax refunds from the Internal Revenue Service under a CHIPS and Science Act provision, bolstering its liquidity months after emerging from Chapter 11 bankruptcy. The semiconductor company expects to receive a total of about $1 billion from the program, enabling a faster shift from 150-millimeter to 200-millimeter silicon carbide wafer production. The refund follows billions of dollars invested in its Chatham County materials plant and Mohawk Valley fab in Utica, New York.
With the latest refund, Wolfspeed’s cash balance has risen to $1.5 billion, according to an investor filing. The payout comes after the company’s September exit from bankruptcy, which allowed it to cut total debt by 70% and reduce annual cash interest payments by 60%. Before the refund, Wolfspeed ended its most recent quarter with $926 million in cash and investments.
CFO Gregor Van Issum said the infusion strengthens liquidity at a pivotal time, giving Wolfspeed flexibility to manage its capital structure and continue advancing silicon carbide innovation. Under lender agreements, the company will allocate $192.2 million toward repaying $175 million of debt, with the remaining amount earmarked for general corporate use.
Wolfspeed is ramping up 200mm wafer production to serve EVs, AI data centers, aerospace, defense and energy markets, while winding down 150mm output and planning to close its Durham facility by year-end. The firm posted $196.8 million in revenue in the latest quarter, with half coming from the Mohawk Valley fab, though one-time restructuring costs led to a $643.6 million net loss.
