Wolfspeed Completes Chapter 11 Restructuring

Restructuring Wolfspeed Completes Restructuring After Chapter 11 Proceedings

2025-10-01 From Susanne Braun | Translated by AI 2 min Reading Time

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In June 2025, the SiC semiconductor manufacturer Wolfspeed filed for Chapter 11 bankruptcy and financial restructuring. This process was completed on September 29, 2025. The total debt was reduced by approximately 70 percent, and five new members were added to the board.

Wolfspeed has completed the restructuring process.(Image: Wolfspeed) — Wolfspeed has completed the restructuring process.
(Image: Wolfspeed)

Wolfspeed, a manufacturer of silicon carbide semiconductors (SiC), has navigated challenging waters in 2025. The company has been struggling with debt for some time due to sluggish demand in the industrial and automotive markets. Meanwhile, U.S. trade policies continue to fuel uncertainties regarding supply chain stability. Last but not least, technological progress in China is increasing price pressure on the market.

In June 2025, Wolfspeed decided to file for Chapter 11 bankruptcy after several out-of-court restructuring proposals were rejected by creditors. This initiated an economic restructuring process. Following the successful completion of the proceedings in September 2025, Wolfspeed has announced that the company’s total debt has been reduced by approximately 70 percent. Additionally, maturities have been extended until 2030, and annual interest payments have been reduced by about 60 percent.

In a Chapter 11 bankruptcy proceeding, this essentially means that during the debt reduction process, negotiations took place regarding whether creditors' claims would be written off or converted into equity. With a debt reduction of around 70 percent, it can be assumed that Wolfspeed's creditors in many cases waived part of their money in exchange for keeping the company alive, thereby recovering at least a portion of their claims.

Vertically Integrated 200-mm Ecosystem in the USA

With the announcement that the restructuring process is complete, Wolfspeed considers itself well-positioned with free cash flows and self-financed business planning to leverage its vertically integrated 200-mm manufacturing network in the USA for sustainable growth. There is no mention of the former plans for a SiC fab in collaboration with the supplier ZF in Saarland in the statement.

"Wolfspeed has completed its accelerated restructuring process, marking the beginning of a new era in which we embark with renewed energy and a renewed commitment to the growth mindset and entrepreneurial spirit that have defined Wolfspeed since its founding," CEO Robert Feurle is quoted as saying.

Wolfspeed has further strengthened its board with experienced executives: Anthony M. Abate brings financial and restructuring expertise, Mike Bokan contributes sales experience from his time at Micron. Eric Musser, a long-time Corning executive, represents global corporate governance, while Hong Q. Hou adds technological expertise from roles at Intel, Fabrinet, and Semtech. Aris Bolisay joins the board as a financial specialist from Renesas. (sb)

Wolfspeed's decision-makers have developed a restructuring plan together with the creditors before filing for Chapter 11 bankruptcy in the USA. (Image:Wolfspeed)

JS Foundry hat Insolvenz angemeldet. (Bild: JS Foundry)

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