By Sabela Ojea
Wolfspeed said it maintains what it called a constructive dialogue with the White House and the Commerce Department to secure federal funding.
The stock was down 48% to $2.79 on Friday before the company provided an update on its conversations with the Trump administration.
The Triangle Business Journal earlier reported interim Executive Chairman Thomas Werner had said the 2022 Chips Act is expected to evolve, and the company is looking at a late summer timeline regarding the $750 million funding.
Wolfspeed was expecting to receive the first tranche of the Chips Act funding in mid-2025.
Wolfspeed is discussing with the White House ways the company can support the Trump administration's efforts to reinforce U.S. industrial leadership in semiconductors, secure domestic supply chains, and reshore the manufacturing of critical mineral derivatives, including semiconductor wafers, the electric-vehicle chip maker said Friday.
The company also said that it continues to explore alternatives regarding its convertible notes and remains in discussions with lenders including Apollo Global Management and Renesas. It backed guidance for its fiscal third quarter.
In January, Wolfspeed said that putting together the U.S. government support with the additional committed funding from its investor group led by Apollo, the company had access to a $2.5 billion funding package.
Finance Chief Neill Reynolds noted that, combining the first tranche of the chips grant and the additional funding committed by Apollo, the company had secured up to three-quarters of $1 billion of liquidity going forward.
Wolfspeed's latest news come a day after it said it named Robert Feurle as its new chief executive, effective May 1. Feurle joins the company from chip maker ams-Osram.
Werner, who stepped in as interim executive chairman in November after the company parted ways with Gregg Lowe, its previous CEO, will return to his post as chairman.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
March 28, 2025 13:27 ET (17:27 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。