Latham & Watkins Advises Wolfspeed in US$1.5 Billion Proposed Funding From US CHIPS Act and One of Largest Private Capital Financings of 2024

The US Department of Commerce and Wolfspeed (NYSE: WOLF) announced they have signed a non-binding preliminary memorandum of terms for up to US$750 million in proposed direct funding in one of the first grants under the CHIPS and Science Act. Additionally, a consortium of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company, and Capital Group have agreed to provide Wolfspeed an additional US$750 million of new financing. Together, these investments support Wolfspeed’s long-term growth plans and bolster domestic production of silicon carbide to power clean energy systems underpinning electric vehicles, artificial intelligence data centers, battery storage, and more. Wolfspeed also expects to receive US$1 billion of cash tax refunds from the advanced manufacturing tax credit under the CHIPS and Science Act, giving the company access to up to US$2.5 billion of expected capital to support the expansion of silicon carbide manufacturing in the United States.

Latham & Watkins LLP represents Wolfspeed in the transaction with a finance team led by partners Kenneth Askin, Elizabeth Oh, and Haim Zaltzman, with associates Erin Cusenbary and Axel Magnusson. Advice was also provided on corporate matters by partners Tad Freese, Greg Rodgers, and Arash Aminian Baghai, with associates Andrew Bentz, Ryan Gold, and Zuzanna Gruca; on tax matters by partner Grace Lee, with associate Jacob Meninga; on real estate matters by partner Dara Denberg, with associate Lucas Fernandez-Rocha; on government contract matters by partner Kyle Jefcoat; on finance matters by partner Ted Dillman; and on German law matters by partner Jan Penselin, with associates Anastasia Dressler and Verena Birke. This follows Latham’s representation of Wolfspeed in multiple private capital transactions totaling up to US$4 billion in 2023.