Overview

• Wolfspeed announced it will seek Chapter 11 protection in the US to reduce its debt burden by about $4.6 billion under a court-supervised plan.
• The restructuring includes a $275 million financing commitment from existing creditors after the company reported a $341 million operating loss in 2024.
• As of March, Wolfspeed held roughly $1.33 billion in cash against approximately $6.5 billion in total liabilities ahead of its bankruptcy filing.
• The company expects to emerge from Chapter 11 by the close of Q3 2025, allowing it to refocus on silicon carbide innovations for electric vehicles and other high-growth sectors.
• Plans for a silicon carbide chip factory in Ensdorf, Saarland with ZF Friedrichshafen were shelved in October 2024 due to worsening financial pressures caused by US trade policies and unclear customs rules.