Wolfspeed reportedly preparing for bankruptcy
Wolfspeed is said to be preparing a Chapter 11 bankruptcy filing within weeks, according to reports from The Wall Street Journal and Reuters. The move comes after failed restructuring talks and growing financial pressure from falling demand and aggressive Chinese competition.
According to market intelligence firm TrendForce, the US-based SiC specialist is carrying approximately USD 6.5 billion in debt and continues to face tariff-related uncertainties
The company has taken a number of steps in recent months to stabilise its financial position. As previously reported by Evertiq, Wolfspeed outlined a strategic plan in January focused on accelerating the path to positive free cash flow, strengthening its balance sheet, and securing cost-effective capital.
In March, the company announced a reduction of roughly 180 employees, primarily within its materials operations in Durham and Siler City, North Carolina. The cost-cutting initiative also included the closure of its North Carolina Fab and other operational simplifications.
Later that month, Wolfspeed confirmed in a press release that it was exploring options related to its convertible notes and was in discussions with lenders, including Apollo and Renesas. These talks have now reportedly collapsed.
On May 08, 2025, Wolfspeed reported third-quarter revenue of USD 185.4 million and a net loss of USD 285.5 million. According to Reuter, the company has also raised going-concern doubts and expects revenues of USD 850 million in 2026—well below analyst expectations of nearly USD 960 million, according to Reuters.
Competition from China continues to intensify. According TrendFroce, Chinese manufacturers are expanding rapidly into mature chip segments and niche substrates, pushing prices to historic lows. Despite this, Wolfspeed remained the global market leader in 2024 with a 33.7% share of the SiC substrate market, followed by TanKeBlue at 17.3% and SICC at 17.1%, according to TrendForce.
Wolfspeed declined to comment when contacted by Reuters.