Wednesday, 21 May, 2025

Wolfspeed to File for Chapter 11 Bankruptcy Amid $6.65B Debt and Plummeting Demand

Semiconductor maker Wolfspeed is preparing to file for Chapter 11 bankruptcy within weeks, backed by a majority of its creditors. The company rejected out-of-court restructuring offers as it grapples with a $6.65 billion debt load, weak industrial and automotive demand, and tariff-related uncertainty. Shares plunged over 57% following the news. Wolfspeed forecasts $850 million in 2026 revenue, below analysts' $958.7 million estimate, raising concerns over its future viability.