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4w ago

Wolfspeed Shares Plummet 48% as CHIPS Act Funding Uncertainty Grows

The semiconductor maker faces historic stock losses and leadership changes while grappling with reduced demand and potential loss of $750 million in 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
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Overview

  • Wolfspeed's stock dropped nearly 48% on Friday, hitting its lowest level since 1998, as concerns over CHIPS Act funding intensified.
  • The company is awaiting a decision on $750 million in CHIPS Act grants and $1 billion in tax credits, critical for its planned expansion in North Carolina and New York.
  • Robert Feurle has been named Wolfspeed's new CEO, effective May 1, following months of financial challenges and restructuring efforts.
  • Wolfspeed has faced reduced demand from automotive customers, leading to a 20% workforce reduction and the closure of a fabrication plant in Durham, North Carolina.
  • Investor sentiment remains bleak, with 32.5% of the company's free float in short positions and its stock down over 59% in 2025.