Chipmaker Wolfspeed's shares hit 27-year low over uncertain federal funding


U.S. power chip maker Wolfspeed’s silicon carbide 200mm wafer is seen on display at Wolfspeed’s Mohawk Valley Fab in Marcy, New York, U.S., April 2022.Courtesy of Wolfspeed/Handout via REUTERS/File Photo

(Reuters) - Wolfspeed's shares lost half their value on Friday, hitting their lowest level since 1998, as funding through a Joe Biden-era legislation that promised subsidies for chip making in the United States remains uncertain.

Wolfspeed is waiting on about $750 million in federal funding under the U.S. CHIPS Act, the 2022 bipartisan law which promised $52.7 billion in subsidies for domestic semiconductor chips manufacturing and production.

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