[News] Wolfspeed Remains Operational During Bankruptcy, Targets Q3 2025 Exit: Challenges Ahead

Wolfspeed announced on June 30th that its Restructuring Support Agreement (RSA), recently signed with Japan’s Renesas, has also gained strong support from key stakeholders. To carry out the plan—aimed at cutting total debt by around 70%—the company has voluntarily filed for Chapter 11 bankruptcy and expects to emerge by the end of Q3 2025, according to its press release.

The struggling silicon carbide giant revealed its RSA plan has strong support from key stakeholders—including over 97% of senior secured noteholders, Renesas Electronics’ U.S. subsidiary, and more than 67% of convertible noteholders. Wolfspeed expects this process to cut its total debt by about 70% ($4.6 billion) and reduce annual cash interest payments by around 60%.

As per Wolfspeed, the company remains fully operational throughout the process—continuing to deliver silicon carbide materials and devices to customers and paying vendors on schedule.

Notably, looking ahead, CEO Robert Feurle emphasizes that Wolfspeed will seize upcoming opportunities, powered by its purpose-built, fully automated 200mm manufacturing platform.

Rocky Road Ahead

As per TrendForce, given SiC substrates’ strategic importance for military and aerospace applications, U.S. government is likely to provide support to ensure Wolfspeed maintains its operations in SiC substrate and overcomes current financial challenges.

As ijiwei notes, Wolfspeed plans to sharpen its 8-inch wafer tech and hold its ground in automotive power devices, but the path is tough. Chinese rivals have advanced with 12-inch substrates, while Wolfspeed’s 8-inch line is losing its cost edge, the report suggests.

According to ijiwei, SICC launched China’s first 12-inch SiC substrate production line in 2024, with wafer yields reaching above 85%. Meanwhile, TankeBlue leveraged the capacity of its Beijing base to push monthly output of 6-inch substrates beyond 15,000 wafers—placing it among the world’s top three producers, the report adds.

As Chinese automakers like BYD, NIO, and Geely ramp up adoption of local SiC power modules—with strong support from the national semiconductor fund—China is set to upgrade its entire SiC supply chain, casting doubt on Wolfspeed’s future, according to ijiwei.

While Wolfspeed’s tech leadership helps it hold a strong market share despite fierce price competition from Chinese rivals, TrendForce warns the company must overhaul its operations and aggressively cut production costs to stay competitive.

According to TrendForce, Wolfspeed leads the global SiC substrate market with a 34% share in 2024, but China’s TankeBlue and SICC are closing the gap, each holding 17%.

Read more

• [News] Wolfspeed Reportedly to Be Taken Over by Apollo-Led Creditors Amid Bankruptcy, with Rivals Set to Gain
• [News] Renesas Reportedly Pushes 2030 Sales Goal Back 5 Years After JPY250B Hit from Wolfspeed Fallout

(Photo credit: Wolfspeed)