Overview

• Wolfspeed Inc. is reportedly set to file for Chapter 11 bankruptcy within weeks, burdened by $6.5 billion in debt.
• The company’s stock plummeted 58% in after-hours trading, reflecting investor concerns over its financial stability.
• After rejecting multiple out-of-court restructuring efforts, Wolfspeed is pursuing a prepackaged reorganization plan supported by most creditors.
• Operational shifts, including plant closures in Durham and expansions in New York and North Carolina, have failed to resolve its financial challenges.
• Wolfspeed’s struggles underscore the broader volatility and high capital demands of the semiconductor industry, particularly for silicon carbide technology crucial to electric vehicles and renewable energy.