Wolfspeed Secures $698.6 Million CHIPS Tax Refund After Bankruptcy Exit

Overview

• Wolfspeed said it received $698.6 million in cash refunds from the IRS under the CHIPS Act’s Advanced Manufacturing Investment Credit (Section 48D).
• The company plans to use $192.2 million of the refund to retire roughly $175 million of debt, with the remainder supporting operations and its 200mm silicon carbide ramp.
• The refund follows $186.5 million in cash tax refunds recorded in fiscal 2025 tied to prior federal filings, bringing reported cash to approximately $1.5 billion.
• Wolfspeed recently emerged from Chapter 11 after a restructuring that reduced total debt by about 70%, extended maturities to 2030, and lowered annual cash interest expense roughly 60%.
• An earlier memorandum for up to $750 million in CHIPS funding for the Siler City project remains undisbursed due to refinancing conditions, as the company continues to note workforce cuts including 73 roles at Siler City and broader reductions of roughly 20–25%.