Shares of Wolfspeed jumped nearly 25% Tuesday when the maker of high-speed semiconductors reported it could receive as much as $2.5 billion in government and private funding.

Chip maker Wolfspeed stock jumped early Tuesday after it said it secured new financing and could get even more funding from the U.S. Chips Act. The stock was up 21% to $13.77 in the premarket Tuesday.

The US Department of Commerce and Wolfspeed have signed a non-binding preliminary memorandum of terms (PMT) for up to $750 million in proposed direct funding under the CHIPS and Science Act.