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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.