Durham-based chipmaker Wolfspeed says it’s received $698.6 million in federal tax refunds authorized by the CHIPS Act, in an SEC filing.
The advanced manufacturing investment tax credit follows $186.5 million in refunds that came the company’s way in its 2024-25 fiscal year.
Wolfspeed officials say the latest refund bolstered the company’s cash balance, leaving it at around $1.5 billion.
“This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed’s strategic evolution,” CFO Gregor Van Issum said. “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.”
The company went through a Chapter 11 bankruptcy reorganization earlier this year, undertaken in cooperation with its major creditors.
As part of the deal, it’ll apply $192.2 million of the refund toward retiring about $175 million in debt.
Wolfspeed’s most recent quarterly report, issued in late October, said it had $571.6 million in cash and cash equivalents as of Sept. 28.
It reported a net loss of $643.6 million for the quarter net of operation costs interest and taxes.
The company has factories in Durham, Siler City and in upstate New York. It’s run into considerable headwinds in getting full use of its state-of-the-art chip fab in New York and its Siler City wafer plant. Chatham’s $5 billion facility in Chatham County is supposed to employ 1,800 people by 2030.
Wolfspeed told investors and the SEC that it expects to “incur underutilization costs related to” both facilities “until market demand for our products meets or exceeds our production capacity.”
Wolfspeed’s chips have an array of uses in high-power systems, most notably in the EV industry.
Wolfspeed shares increased around 9% on Monday from Friday’s close. On Tuesday, shares dropped around 3.4% and closed at $21.36. Share have traded as high as $36.60 as recently as Oct. 9.
