Tuesday, July 1, 2025

Wolfspeed Expected to File for Bankruptcy Soon Amidst Aggressive Chinese Pricing and Declining Demand

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Wolfspeed Expected to File for Bankruptcy Soon Amidst Aggressive Chinese Pricing and Declining Demand
Wolfspeed, a leading player in the silicon carbide market, is reportedly preparing to file for Chapter 11 bankruptcy within weeks due to escalating competition from Chinese rivals and weakening demand in industrial and automotive sectors. With approximately $6.5 billion in debt and a recent downgrade of its revenue forecast for 2026 to $850 million—significantly below analysts’ expectations—Wolfspeed has faced mounting pressures, including tariff uncertainties. Despite exploring alternatives with lenders and rejecting out-of-court restructuring offers, the company’s struggles have led to multiple site closures and workforce reductions. As Chinese competitors offer silicon carbide wafers at significantly lower prices, Wolfspeed’s market dominance is increasingly challenged, with market forecasts indicating a continued decline in revenue amid oversupply and soft demand.
Original source:
https://www.trendforce.com/news/2025/05/21/news-wolfspeed-reportedly-to-file-bankruptcy-in-weeks-as-chinas-aggressive-pricing-weak-demand-bite/

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