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A Wall Street Journal article citing sources with knowledge of the situation claims that Wolfspeed, Inc. (NYSE:WOLF) is getting ready to declare Chapter 11 bankruptcy in the upcoming weeks. After turning down several out-of-court restructuring proposals, the semiconductor manufacturer is moving forward with a court-supervised process backed by the majority of its creditors. Following the news, the firm’s shares fell more than 57% in extended trade.
A worker assembling metal oxide semiconductor field effect transistors (MOSFETs) on a conveyer belt.
A U.S. manufacturer of silicon carbide power chips, Wolfspeed, Inc. (NYSE:WOLF) has been under increasing financial strain as a result of weak demand in the automotive and industrial sectors and continued tariff uncertainties. Earlier this month, the business expressed significant concerns about its ability to continue operations and published a weak revenue outlook.
Currently, Wolfspeed, Inc. (NYSE:WOLF) projects $850 million in revenue in 2026, which is significantly less than the $958.7 million anticipated by consensus analysts. These events highlight how serious its liquidity situation is, as the business finds it difficult to control its debt load in the face of deteriorating economic circumstances. The stock has declined by over 88% in the past 12 months.
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