Wolfspeed Inc. (NYSE:WOLF) saw its stock climb 10.4% in premarket trading on Monday after announcing it has received $698.6 million in cash tax refunds from the Internal Revenue Service.
The refund was issued under the Advanced Manufacturing Investment Credit in Section 48D of the U.S. tax code and accounts for a sizable portion of the roughly $1 billion in total tax refunds the company expects to receive. Wolfspeed previously collected $186.5 million tied to its federal tax filings for fiscal years 2023 and 2024.
With the latest payment, Wolfspeed’s cash balance has risen to about $1.5 billion, bolstering its liquidity as it accelerates its transition to 200mm silicon carbide production.
“This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed’s strategic evolution,” said Wolfspeed CFO, Gregor Van Issum. “It provides us with the financial agility to support long-term growth, manage our capital structure responsibly, and continue driving innovation across the silicon carbide value chain for our customers.”
The company said $192.2 million of the refund will go toward retiring approximately $175 million of outstanding debt, with the remaining proceeds earmarked for general corporate use.
Wolfspeed continues to invest in building out a fully integrated, U.S.-based silicon carbide supply chain. The company is working to broaden its power device revenue across fast-growing markets such as AI data centers, aerospace and defense, and industrial and energy applications, while maintaining its presence in electric vehicles.