Facing fierce competition from rapidly expanding Chinese rivals and weak demand in the industrial and automotive markets, Wolfspeed is reportedly preparing to file for bankruptcy within weeks, according to the Wall Street Journal and Reuters.
Weighed down by around $6.5 billion in debt, the U.S. silicon carbide giant is also grappling with ongoing tariff-related uncertainty—adding more pressure to an already strained business, as per the reports.
In late March, the company stated in a press release that it was exploring alternatives with regard to its convertible notes, and remains in a dialogue with lenders, including Apollo and Renesas.
But as those talks have collapsed, Wolfspeed is now preparing to file for Chapter 11 bankruptcy with backing from most of its creditors, after turning down multiple out-of-court restructuring offers, the reports say.
The silicon carbide chipmaker recently warned of going-concern risks and slashed its 2026 revenue forecast to $850 million—well below analysts’ expectations of $958.7 million, as per Reuters.
Wolfspeed fought to bounce back but ultimately stumbled. Back in November, 2024, facing weak EV demand and slow industrial markets, the company announced a 20% workforce cut and multiple site closures.
In early 2025, it closed several facilities and moved its device business to a 200mm silicon carbide fab to boost efficiency and scale production, according to Reuters.
China’s Rising Challenge
Fierce competition from China could make things even worse. A February report from Nikkei highlighted China’s aggressive push into mature chips and niche substrates, driving prices to record lows. Wolfspeed’s 6-inch silicon carbide wafers once sold for $1,500 each—now Chinese rivals are offering them for as little as $500 or less, the report added.
TrendForce’s latest research shows that in 2024, Wolfspeed held the top spot with a 33.7% share in the SiC substrate market. However, Chinese rivals TanKeBlue and SICC quickly rose, capturing 17.3% and 17.1% shares, securing second and third place.
According to TrendForce, intensifying market competition and sharp price declines have pushed global revenue for N-type SiC substrates down 9% YoY to US$1.04 billion in 2024. Looking ahead to 2025, the SiC substrate market will continue to face dual pressures of soft demand and oversupply, as per TrendForce.
https://www.trendforce.com/news/new...s-chinas-aggressive-pricing-weak-demand-bite/
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