Wolfspeed receives nearly $700m in tax refunds
Wolfspeed has received $698.6m in cash tax refunds from the US Internal Revenue Service (IRS) from the Advanced Manufacturing Investment Credit (AMIC) under Section 48D of the Internal Revenue Code.
The company says this refund represents a significant step in getting back the approximately $1 billion of Section 48D cash tax refunds. In fiscal 2025, the company received $186.5m in cash tax refunds related to its 2023 and 2024 federal tax filings.
Following receipt of these funds, Wolfspeed’s cash balance is approximately $1.5b, positioning the company with more financial flexibility as it ramps its 200mm SiC line.
“This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed’s strategic evolution,” said Wolfspeed CFO, 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 SiC value chain for our customers.”
Over the past several years, Wolfspeed has made significant investments to establish a vertically integrated, US-based, and highly resilient supply chain for SiC materials and power devices. Section 48D support has helped accelerate the company’s transition from 150mm (6-inch) to 200mm (8-inch) wafer technology, a critical next-generation platform for increasing efficiency and expanding global adoption of SiC.
As per the agreement with the senior secured lenders, the company plans to allocate $192.2m of the refund toward retiring approximately $175m of outstanding debt, with the remaining funds for general corporate purposes.
