(The Center Square) – Wolfspeed, the silicon carbide power solutions company headquartered in North Carolina once in line for three-quarters of $1 billion from the Biden administration, has emerged from Chapter 11 bankruptcy strengthened by $698.6 million in cash tax refunds from the IRS.
The money comes through the Advanced Manufacturing Investment Credit under Section 48D of the Internal Revenue Code, the company said this week. In fiscal year 2025, Wolfspeed received $186.5 million in cash tax refunds tied to federal tax filings for fiscal 2023 and fiscal 2024.
Wolfspeed, headquartered in Durham, said it “continues to focus on diversifying its power device revenue into key growing segments, including AI data centers, aerospace and defense, and industrial and energy, in addition to continuing to support the electric vehicle market.”
“This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed’s strategic evolution,” Chief Financial Officer Gregor Van Issum said. “It provides us with the financial agility to support long-term growth, manage our capital structure responsibly, and continue driving innovation across the silicon carbide value chain for our customers.”
Wolfspeed in October 2024 had a memorandum of understanding for $750 million from the previous presidential administration. The infusion was to “support the construction of a new silicon carbide wafer manufacturing facility in Siler City, helping to secure a reliable domestic supply of the semiconductors that will underpin the future energy economy and AI boom,” a release from U.S. Department of Commerce said.
CEO Gregg Lowe was fired last year in November and Robert Feurle took over May 1. On May 23, Feurle announced David Emerson’s addition as chief operating officer.
The CHIPS Act grant to Wolfspeed, largest of the Biden presidency to not be awarded, was subject of negotiation with the Trump administration earlier this year. Major restructuring was forecast in late March if the money didn’t come.
Since 2004, Wolfspeed has been recipient of 38 awards valued at $1.4 billion from local and state officials, and another $119 million from federal grants and allocated tax credits. It has not gotten loans or bailouts, according to the Good Jobs First website that tracks subsidies.
Layoffs are impacting the $5 billion factory in Chatham County, with 73 announced earlier this year. That’s about one-third of the workforce. At its Durham headquarters in November last year, 20% of the workforce was trimmed, according to published reports.
