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.

• 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.

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