BY Fraser Tennant
Amid huge debt and slowing demand from electric vehicle and industrial markets, chipmaker Wolfspeed has filed for Chapter 11 bankruptcy to facilitate the implementation of a restructuring support agreement (RSA) with key lenders.
Upon emergence from the Chapter 11 process, Wolfspeed expects to have reduced its overall debt by approximately 70 percent, representing a reduction of approximately $4.6bn and a reduction of its annual total cash interest payments by approximately 60 percent.
The company raised going-concern doubts in May 2025, as deepening economic uncertainty stemming from changing US trade policies, combined with weakening demand, triggered a series of financial challenges.
However, through the Chapter 11 filing and RSA, Wolfspeed expects to be better positioned to execute on its long-term growth strategy and accelerate its path to profitability. Concurrently, the company is continuing to operate as usual throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors in the ordinary course.
“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” said Robert Feurle, chief executive of Wolfspeed. “With a stronger financial foundation, Wolfspeed will be better positioned to move faster on our strategic priorities and maintain our position as a global leader in the silicon carbide market. The strong support of our lenders is a testament to their belief in our business and our ability to capitalise on the opportunities ahead, driven by our exceptional, purpose-built, fully automated 200mm manufacturing footprint.”
As the pioneers of silicon carbide – a more energy-efficient material than traditional silicon – and creators of the most advanced semiconductor technology on earth, Wolfspeed leads the market in the worldwide adoption of silicon carbide technologies that power the world’s most disruptive innovations.
Wolfspeed expects to move through the Chapter 11 process swiftly and emerge by the end of the third quarter of 2025.
“We remain laser-focused on delivering cutting-edge products to our customers and working with our vendors in the normal course,” concluded Mr Feurle. “I am confident that the restructuring process will better position Wolfspeed to meet the growing demands of the semiconductor market.”
News: Wolfspeed files for bankruptcy protection to cut worsening debt