Wolfspeed, Inc. Receives $698.6M Tax Refund

By Greg Peters • Monday, December 01 10:13 • Permanent Link

Wolfspeed, Inc. (NYSE: WOLF) has announced that it has received a significant cash tax refund of $698.6 million from the Internal Revenue Service (IRS) under the advanced manufacturing investment credit (AMIC) program. This refund, along with an additional $186.5 million received in fiscal 2025, has bolstered the company's cash balance to approximately $1.5 billion.

The company plans to utilize a portion of the refund, specifically $192.2 million, to retire approximately $175 million of outstanding debt, with the remaining funds earmarked for general corporate purposes. This strategic allocation aims to enhance the company's financial flexibility and manage its capital structure responsibly.

Wolfspeed's focus on diversifying its power device revenue into key growing segments, such as AI data centers, aerospace and defense, and industrial and energy, reflects its commitment to capitalizing on emerging opportunities and supporting the electric vehicle (EV) market.

The press release also highlights the company's significant investments in establishing a vertically integrated, U.S.-based supply chain for silicon carbide materials and power devices. With the receipt of the cash tax refunds, Wolfspeed aims to advance the ramp of its 200mm silicon carbide manufacturing footprint, a critical next-generation platform for increasing efficiency and expanding global adoption of silicon carbide.

Gregor Van Issum, Wolfspeed's CFO, emphasized that the substantial cash infusion strengthens the company's liquidity position at a critical phase in its strategic evolution, providing the financial agility to support long-term growth and continue driving innovation across the silicon carbide value chain for its customers.

These developments underscore Wolfspeed's commitment to leveraging silicon carbide technologies to power disruptive innovations and contribute to a better world. With a focus on powering various applications through silicon carbide material, power modules, discrete power devices, and power die products, the company aims to bring tangible benefits to its customers and stakeholders.

As a result of these announcements, the company's shares have moved -1.07% on the market, and are now trading at a price of $20.28. For the full picture, make sure to review WOLFSPEED, INC.'s 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.