May 21, 2025 — Wolfspeed, Inc. (NYSE: WOLF), a global leader in silicon carbide (SiC) and gallium nitride (GaN) technologies, today announced that it is preparing to file for Chapter 11 bankruptcy protection within the coming weeks. This decision follows challenging market conditions, including weakened demand in the industrial and automotive sectors, sustained tariff uncertainty, and increasing competitive pressure from rapidly expanding Chinese producers.
“Over the past year, we have taken decisive actions to realign our cost structure and strengthen our operations,” said Gregg Lowe, Chief Executive Officer of Wolfspeed. “Despite workforce reductions, site consolidations, and the transition of our device business to a 200 mm SiC fabrication facility, global market dynamics and our significant debt load have made a comprehensive restructuring necessary to secure our long-term viability.”
Key factors influencing the decision include:
High Debt Obligations: With approximately $6.5 billion in outstanding debt, negotiations over convertible notes and alternative financing with major lenders, including Apollo and Renesas, were unable to reach a sustainable solution.
Market Demand Challenges: Sluggish end-market demand across electric vehicles and industrial power applications, coupled with intensified price competition from Chinese suppliers offering SiC wafers at discounts of up to two-thirds off historical U.S. pricing.
Revenue Forecast Revision: In April 2025, Wolfspeed revised its 2026 revenue outlook down to $850 million—significantly below external analyst estimates—highlighting near-term liquidity and going-concern considerations.
“Filing under Chapter 11 will provide us the appropriate framework to implement an equitable restructuring plan supported by most of our creditors,” added Lowe. “This step allows us to continue serving our customers without interruption, invest in our highest-value technologies, and emerge as a stronger, more competitive company.”
Recent Strategic Actions
Workforce and Facilities: November 2024 saw a 20% reduction in workforce and the consolidation of select manufacturing sites.
Process Scaling: The early 2025 shift of device production into a larger 200 mm SiC fab to drive improved throughput and cost efficiencies.
Industry Context
According to TrendForce, Wolfspeed retained a 33.7% share of the global SiC substrate market in 2024, even as competitors such as TanKeBlue and SICC captured 17.3% and 17.1%, respectively. Global revenue for N-type SiC substrates declined 9% year-over-year to $1.04 billion in 2024 amid price erosion and softer demand—trends expected to persist into 2025.
