India, Oct. 9 -- The US Department of War has announced a conditional loan commitment of up to USD 1.5 billion to semiconductor manufacturer Wolfspeed to strengthen domestic production of specialised chips and materials used in military radar, electronic warfare (EW), communications and other critical systems.

Announced on 7 October, the government plans to finance it through the Department's Office of Strategic Capital (OSC). The proposal aims to support the US supply chain for silicon carbide (SiC) and gallium nitride (GaN), two wide-bandgap semiconductor materials used in advanced power electronics and radio-frequency applications.

The financing, combined with private capital, is intended to strengthen US manufacturing capabilities f...