Money will go to the chipmaker's new silicon carbide factory in North Carolina and factory in Marcy, New York.
The Biden-Harris administration announced plans Tuesday to provide up to $750 million in direct funding to semiconductor developer and manufacturer Wolfspeed. The money will be used to support the company's new silicon carbide factory in North Carolina that makes the wafers used in advanced computer chips and its factory in Marcy, New York. In addition to the government grant, a group of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company and Capital Group plan to provide an additional $750 million to Wolfspeed, the company said. Wolfspeed also expects to receive $1 billion from an advanced manufacturing tax credit, meaning the company in total will have access of up to $2.5 billion. Wolfspeed stock surged Tuesday on the announcement of the combined $1.5 billion in funding. Shares were up 3 points, or 30%, as of noon ET. Wolfspeed's use of silicon carbide enables the computer chips used in electric vehicles and other advanced technologies to be more efficient. The North Carolina-based company's two projects are estimated to create 2,000 manufacturing…