Wolfspeed Prepares for Bankruptcy as Financial Crisis Deepens, Says WSJ

A Wall Street Journal piece, backed by sources familiar with the matter, suggests that Wolfspeed, Inc. (NYSE: WOLF It is preparing to file for Chapter 11 bankruptcy within the next few weeks. Having rejected multiple out-of-court debt-restructuring offers, the chipmaker is now proceeding with a court-led procedure supported mainly by its major lenders. In response to this announcement, the company’s stock price dropped over 57% during after-hours trading.

An employee putting together metal oxide semiconductor field effect transistors (MOSFETs) on an assembly line.

A US-based producer of silicon carbide power chips, Wolfspeed, Inc. (NYSE:WOLF), has faced growing financial pressure due to reduced demand from the automotive and industrial markets along with ongoing tariff issues. Recently, the company revealed serious doubts about sustaining its operations and issued a pessimistic forecast for revenues earlier this month.

At present, Wolfspeed, Inc. (NYSE:WOLF) forecasts revenues of around $850 million for 2026, considerably below the $958.7 million expected by average analyst estimates. This underscores the severity of its financial challenges, particularly concerning liquidity issues, as the company struggles with mounting debts amidst worsening economic conditions. Over the last year, the stock price has dropped more than 88%.

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