News: Microelectronics
1 December 2025
Wolfspeed receives $698.6m in cash tax refunds
Wolfspeed Inc of Durham, NC, USA — which makes silicon carbide (SiC) materials and power semiconductor devices — has received $698.6m in cash tax refunds from the Internal Revenue Service (IRS) from the Advanced Manufacturing Investment Credit (AMIC) under Section 48D of the Internal Revenue Code. The refund represents a significant step in the monetization of the approximately $1bn of Section 48D cash tax refunds accrued from the AMIC. In fiscal 2025, Wolfspeed received $186.5m in cash tax refunds related to its fiscal 2023 and fiscal 2024 federal tax filings.
Following receipt of these funds, Wolfspeed’s cash balance is about $1.5bn, giving enhanced financial flexibility as the firm advances the ramp of its 200mm silicon carbide manufacturing footprint. Wolfspeed says that it continues to focus on diversifying its power device revenue into key growing segments, including AI data centers, aerospace & defense, and industrial & energy, in addition to continuing to support the electric vehicle (EV) market.
“This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed’s strategic evolution,” says chief financial officer Gregor Van Issum. “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 says that, over the past several years, it has made significant investments to establish a vertically integrated, US-based and highly resilient supply chain for silicon carbide materials and power devices. Section 48D support has helped to accelerate its transition from 150mm (6-inch) to 200mm (8-inch) wafer technology, which it regards as a critical next-generation platform for increasing efficiency and expanding global adoption of silicon carbide. With decades of experience working with SiC, Wolfspeed reckons that it is uniquely positioned to meet the accelerating demand for silicon carbide as more sectors look to electrify operations and improve energy efficiency.
As per the agreement with the senior secured lenders, Wolfspeed plans to allocate $192.2m of the refund toward retiring about $175m of outstanding debt, with the remaining funds for general corporate purposes.
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Wolfspeed receives $192m in Section 48D cash tax refunds from IRS
