One of the most exciting publicly traded semiconductor technology companies in North America has landed new funding. And they’re planning to use it to secure the domestic supply of silicon carbide.

‍What’s happening:‍

• Semiconductor technology company Wolfspeed (NYSE: WOLF) has secured $750M USD in new financing
  
• The new financing round is led by Apollo, The Baupost Group, Fidelity and others
  

Why it matters:‍

• Alongside of this new financing, the United States Department of Commerce has also signed a non-binding preliminary memorandum of terms with Wolfspeed for up to $750M USD in additional funding under the CHIPS and Science Act
  
• Silicon carbide is a superior alternative to traditional silicon for the purposes of high power applications such as renewable energy storage systems, electric vehicle powertrains, data centres and battery energy storage systems
  

Going deeper:‍

• The new proposed funding from the United States Department of Commerce is aiming to accelerate the build out of new Wolfspeed manufacturing infrastructure in upstate New York and central North Carolina to ensure the consistent supply of domestically produced silicon carbide
  
• Wolfspeed is the world’s largest producer of silicon carbide technology and first developed the technology more than three decades ago at North Carolina State University
  
• Silicon carbide has become one of the fastest growing areas of opportunities in semiconductors, largely due to the fact it has multiple benefits over traditional silicon including higher thermal conductivity, higher power applications and energy efficiency
  

The intrigue:‍

• A large part of the importance surrounding securing domestic sources of supply for semiconductor manufacturing comes from rising restrictions out of China on massively reducing the exportation of metals and chemical elements such as gallium which are essential for the manufacturing of chips

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