Wolfspeed shares surged 27% in extended trading after the U.S. Department of Defense conditionally committed up to $1.5 billion to expand the chipmaker’s domestic production of silicon carbide materials and power devices. The 30-year financing would come through the department’s Office of Strategic Capital and support upgrades to gallium nitride technology for next-generation communications infrastructure and electronic warfare systems, as well as radiation-hardening capabilities. Silicon carbide devices are valued for energy efficiency and are used in electric vehicles, solar inverters and industrial power systems. Wolfspeed would issue warrants covering up to 7.5% of its fully diluted equity. The commitment remains subject to due diligence, definitive agreements, government approvals, congressional funding and third-party consents.