Wolfspeed, Inc. just announced a significant financial milestone. The company is a world leader in silicon carbide technology. It received $698.6 million in cash tax refunds from the IRS. This large refund comes from the Advanced Manufacturing Investment Credit. This credit is under Section 48D of the Internal Revenue Code. The payment represents a major step in monetizing accrued tax refunds. The total amount is approximately $1 billion. Wolfspeed already received $186.5 million in fiscal years 2023 and 2024.
Strengthening Financial Position for Key Investments
Following this major cash infusion, Wolfspeed’s total cash balance is now $1.5 billion. This amount strengthens the company’s liquidity position. It provides enhanced financial flexibility for future work. Wolfspeed is currently advancing the ramp of its 200mm silicon carbide manufacturing footprint. The company plans to diversify its power device revenue. Key growing segments include AI data centers and aerospace. The industrial and energy sectors are also targets. Wolfspeed will also continue to support the expanding electric vehicle (EV) market.
Wolfspeed CFO, Gregor Van Issum, commented on the funds. He noted the cash infusion strengthens their position at a critical phase. He stated that it supports the company’s long-term growth. The funds also help Wolfspeed manage its capital structure. They will continue driving innovation across the silicon carbide value chain. The Section 48D support has helped accelerate a transition. This move shifts production from 150mm to 200mm wafer technology. This platform is critical for increasing efficiency. Wolfspeed will allocate $192.2 million of the refund. This amount will retire about $175 million of outstanding debt. The remaining funds are for general corporate purposes.
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News Source: Businesswire.com
