Chipmaker Wolfspeed files for bankruptcy but will remain operational - Techzine Global

Jul 01, 2025

Yesterday, Wolfspeed announced that the recently signed restructuring agreement with Japan’s Renesas had received broad support from stakeholders. In order to implement these plans, the company voluntarily filed for Chapter 11 bankruptcy.

Wolfspeed expects to emerge from this process by the end of the third quarter of 2025. The silicon carbide manufacturer said the restructuring plan has broad support from more than 97 percent of subordinated bondholders, the US subsidiary of Renesas Electronics, and more than 67 percent of convertible bondholders. According to Wolfspeed, this restructuring process will reduce total debt by approximately $4.6 billion. Annual interest expenses will decrease by approximately 60 percent.

The company emphasizes that it will remain fully operational throughout the process. Deliveries of silicon carbide materials and components to customers will continue, and the company will pay its suppliers on time.

Looking ahead, CEO Robert Feurle says Wolfspeed will take advantage of upcoming opportunities, thanks to its specially developed, fully automated production platform for 200 mm wafers.

According to TrendForce, it is likely that the US government will provide support to Wolfspeed, given the strategic importance of silicon carbide substrates for defense and aviation. This will enable the company to maintain production levels and overcome financial obstacles.

Wolfspeed wants to improve its technology for 8-inch wafers and maintain its position in the automotive power electronics market. However, the road ahead will be difficult, as Chinese competitors are now producing 12-inch substrates. Wolfspeed’s 8-inch line is also losing competitiveness.

A February report by Nikkei highlighted China’s aggressive advance in mature chips and niche substrates, causing prices to plummet to record lows. Wolfspeed’s 6-inch silicon carbide wafers once sold for $1,500 each—now Chinese competitors are offering them for as little as $500 or less, according to the report.

According to the latest research from TrendForce, Wolfspeed still had a 33.7 percent market share in the SiC substrate market in 2024. But Chinese rivals TanKeBlue and SICC quickly climbed to 17.3 percent and 17.1 percent, respectively, taking second and third place.

Despite fierce price competition from China, Wolfspeed is managing to maintain its strong market position thanks to its technological edge. Nevertheless, TrendForce warns that the company needs to thoroughly review its operations and significantly reduce production costs in order to remain competitive.

Chapter 11 / restructuring / Wolfspeed

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