Chapter 11 bankruptcy
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Wolfspeed Files for Bankruptcy as Shares Plunge Nearly 60%
U.S. silicon carbide chipmaker Wolfspeed plans to file for Chapter 11 bankruptcy within weeks amid $5.3B debt struggles, regulatory filings show. After rejecting creditor proposals, the majority-backed bankruptcy aims to restructure obligations while maintaining operations. Shares plunged 60% post-announcement, exacerbating months of instability marked by leadership changes, 1,180 layoffs, and facility closures. Wolfspeed’s 2026 revenue projection of $850M trails analysts’ $958.7M forecast. The Durham-based firm, once a pioneer in EV/5G wafer tech, may attract acquisition bids despite debt hurdles. Its collapse risks disrupting silicon carbide supply chains and U.S. semiconductor self-sufficiency goals.
