News: Microelectronics
1 July 2025
Wolfspeed files for Chapter 11 bankruptcy as part of financial restructuring
Wolfspeed Inc of Durham, NC, USA — which makes silicon carbide (SiC) materials and power semiconductor devices — has taken the next step to implement its previously announced restructuring support agreement (RSA) with key lenders, including (i) holders of more than 97% of its senior secured notes, (ii) Renesas Electronics Corp’s US subsidiary and (iii) convertible debtholders holding more than 67% of the outstanding convertible notes.
Upon emergence from the process, Wolfspeed expects to have reduced its overall debt by about 70% ($4.6bn) and its annual total cash interest payments by about 60%. By taking this step, the firm expects to be better positioned to execute on its long-term growth strategy and accelerate its path to profitability. Wolfspeed 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.
To implement the prepackaged plan, Wolfspeed has voluntarily filed petitions for reorganization under Chapter 11 of the US Bankruptcy Code. It expects to move emerge from this by the end of third-quarter 2025.
“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” says CEO Robert Feurle. “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,” he believes. “The strong support of our lenders is a testament to their belief in our business and our ability to capitalize on the opportunities ahead, driven by our exceptional, purpose-built, fully automated 200mm manufacturing footprint.”
Wolfspeed has filed a number of customary motions with the Court to support ordinary-course operations, including, but not limited to, continuing employee compensation and benefits programs. The firm is continuing to pay vendors in the ordinary course of business for goods and services delivered throughout the restructuring process via an All-Trade Motion. Vendors are expected to be unimpaired in the process. Wolfspeed expects to receive court approval for these requests shortly.
Renesas expects $1.7bn loss in first-half 2025 from Wolfspeed restructuring
Wolfspeed’s restructuring deal with lenders to reduce debt by 70% and interest payments by 60%
Renesas abandoning SiC production plans amid Chinese price war and Wolfspeed uncertainty
Renesas and Wolfspeed sign 10-year silicon carbide wafer supply agreement
