Semiconductor supplier Wolfspeed is preparing to file for bankruptcy within weeks, as it struggles to address its debt pile, the Wall Street Journal reported on Tuesday, citing sources familiar with the matter.

Shares of the company fell almost 70% in morning trading on Wednesday.

Wolfspeed has been grappling with sluggish demand in industrial and automotive markets and tariff-induced uncertainty.

The company is looking to file for Chapter 11 bankruptcy that would have the support of a majority of its creditors, after rejecting several out-of-court debt restructuring proposals from creditors, the report said.

Wolfspeed declined to comment when contacted by Reuters.

The company, which manufactures chips using silicon carbide, raised going-concern doubts and forecast weaker-than-expected annual revenue earlier this month.

The company expects revenue of $850 million in 2026, below analysts' estimate of $958.7 million.