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US semiconductor developer and manufacturer Wolfspeed announced on October 15th local time that it has signed a non binding preliminary memorandum of terms (PMT) with the US Department of Commerce, which plans to provide up to $750 million in funding directly under the Chip and Science Act.
In addition, an investment fund consortium led by Apollo, The Baupost Group, Fidelity Management&Research Company, and Capital Group has agreed to provide an additional $750 million in new financing to Wolfspeed.
In addition, Wolfspeed is expected to receive a cash refund of $1 billion from the Advanced Manufacturing Tax Credit under the Chip and Science Act, which will give the company a total expected funding of up to $2.5 billion.
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