Wolfspeed Tumbles 59% as the Semiconductor Supplier Prepares to File for Bankruptcy Within Weeks
(Reuters) - 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 over 59% in extended trading.
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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10