Pentagon Backs Silicon Carbide Wafers With $75 Million Loan
The Office of Strategic Capital offered Halo Industries a $75 million conditional loan on Nov. 5 to scale U.S. silicon carbide wafer production.
WASHINGTON — The Department of War’s Office of Strategic Capital (OSC) signed a $75 million conditional loan commitment with Halo Industries Inc. on Nov. 5, 2026, to scale production of silicon carbide semiconductor wafers, the department said.
The department said the loan would draw in an additional $75 million in private capital. Halo’s U.S. manufacturing operations are in Santa Clara, California, according to the release.
What the wafers are for
Silicon carbide wafers are used in high-voltage power electronics, the department said. It listed advanced radar, electronic warfare, hypersonics and directed energy weapons among the defense uses.
Halo uses a laser process to slice silicon carbide ingots into wafers, according to the department. The release said the method replaces mechanical diamond saws and can improve throughput up to tenfold. That figure comes from the government release.
The trade argument
The department said “heavy state subsidies aiding foreign competitors” have put U.S. wafer producers under pressure. It said that pressure increased U.S. reliance on overseas supply chains. The release did not name the countries involved.
“Halo’s new laser wafering technology will help establish cost-effective domestic supply chains, enabling the United States to compete globally and counteracting price dumping in the silicon carbide market,” said David A. Lorch, director of the Office of Strategic Capital.
Under Secretary of War for Research and Engineering Emil Michael said securing the microelectronics supply chain “is non-negotiable for our national defense,” according to the release.
Conditions
The commitment is conditional, the department said. Halo must complete financial, legal, technical, investment and due-diligence steps before financial close.
The same day, the OSC announced a $250 million commitment to battery cathode maker 6K Inc. Peter’s World covered that deal separately.
What it means
Analysis: The department framed this loan, like the 6K deal, as a response to foreign pricing rather than only a technology bet. That language places industrial lending inside the wider contest over subsidies and dumping. The size is modest, and an OSC official called it a first step.
Sources
- U.S. Department of War: Office of Strategic Capital Signs $75 Million Conditional Loan Commitment With Halo Industries, Inc.
- U.S. Department of War: $250 Million Conditional Loan Commitment With 6K Inc.
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Featured photo: Two six-inch silicon carbide wafers in a transport box (file photo). Photo: FDominec, Wikimedia Commons, CC BY-SA 4.0.
