Wolfspeed Receives $698.6 Million
Wolfspeed Receives $698.6 Million in Section 48D Cash Tax Refunds from IRS
Wolfspeed, Inc, a global leader in silicon carbide technology and manufacturing, announced that it has received $698.6 million in cash tax refunds from the Internal Revenue Service (IRS) through the Advanced Manufacturing Investment Credit (AMIC) under Section 48D of the Internal Revenue Code. This marks a major milestone in monetizing the roughly $1 billion in Section 48D credits the company has accrued. In fiscal 2025 alone, Wolfspeed received an additional $186.5 million in cash tax refunds tied to its fiscal 2023 and 2024 federal filings.
With the infusion of funds, Wolfspeed’s cash balance now stands at approximately $1.5 billion, significantly strengthening its financial position as it accelerates the ramp-up of its 200mm silicon carbide manufacturing capacity. The company continues to diversify its power device revenue base, targeting high-growth sectors such as AI data centers, aerospace and defense, industrial and energy applications, while continuing to serve the electric vehicle (EV) market.
“This substantial cash infusion further reinforces our liquidity position at a pivotal moment in Wolfspeed’s strategic transformation,” said Gregor Van Issum, Wolfspeed CFO. “It enhances our financial agility, enabling us to support long-term expansion, prudently manage our capital structure, and continue advancing innovation throughout the silicon carbide value chain.”
In recent years, Wolfspeed has made extensive investments to build a vertically integrated, U.S.-based, and highly resilient supply chain for silicon carbide materials and power devices. Support from Section 48D has accelerated the transition from 150mm (6-inch) to 200mm (8-inch) wafer technology—an essential next-generation platform that will boost efficiency and drive wider global adoption of silicon carbide solutions. Leveraging decades of expertise with this complex material, Wolfspeed is well positioned to meet rapidly increasing demand as industries move toward electrification and energy efficiency.
In accordance with its agreement with senior secured lenders, the company will allocate $192.2 million of the refund to retire approximately $175 million in outstanding debt, with the remaining funds designated for general corporate purposes.
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