Case Summary: Wolfspeed Chapter 11

Business Description

Headquartered in Durham, NC, Wolfspeed, Inc., along with its Debtor⁽¹⁾ and non-Debtor affiliates (collectively, “Wolfspeed” or the “Company”), is a leading developer and manufacturer of wide-bandgap semiconductors, specializing in silicon carbide (“SiC”) and gallium nitride (“GaN”) technologies.

• The Company operates through two primary segments:
  • Materials: Produces and sells SiC bare wafers, epitaxial wafers, and GaN epitaxial layers to corporate, government, and university customers for use in radio-frequency, power, and other applications.
  • Power Devices: Designs and manufactures SiC-based power components, including Schottky diodes, metal-oxide-semiconductor field-effect transistors (MOSFETs), and power modules, which offer superior efficiency and performance over traditional silicon devices.

• Wolfspeed’s products are critical components in high-growth sectors such as electric vehicles (EVs), fast-charging infrastructure, renewable energy systems, server power supplies, and military and telecommunications applications.

For the nine months ended March 30, 2025, the Company reported revenue of $560.6 million, a decrease from $606.5 million in the prior-year period, alongside a net loss of $939.9 million. The significant losses reflect the heavy costs associated with ramping up new manufacturing facilities and below-capacity utilization.

Wolfspeed, Inc. and Wolfspeed Texas LLC filed for Chapter 11 protection on June 30, 2025 (the "Petition Date") in the U.S. Bankruptcy Court for the Southern District of Texas. As of the quarter ended March 30, 2025, the Company reported $7.6 billion in assets and $6.7 billion in liabilities.

⁽¹⁾ Wolfspeed Texas LLC.

Corporate History

Founded in 1987 as Cree Research, Inc., the Company initially focused on developing silicon carbide for commercial use in semiconductors and lighting. After going public in 1993, Cree established itself as a pioneer in advanced materials, introducing the first commercial blue light-emitting diode (LED) in 1989 and the first commercial SiC wafer by 1991.

• The Company expanded through acquisitions, including Ruud Lighting in 2011 to broaden its LED lighting portfolio and certain radio-frequency (RF) power device assets from Infineon Technologies AG in 2018.

Strategic Pivot to SiC Pure-Play

• Beginning in the late 2010s, the Company executed a strategic pivot to concentrate exclusively on the high-growth SiC semiconductor market, divesting its non-core businesses:
  • The Lighting Products division was sold in 2019.
  • The LED business was sold in 2021.
  • The RF business was sold to MACOM Technology Solutions in 2023.
• In October 2021, to underscore its new focus, the company officially rebranded from Cree, Inc. to Wolfspeed, Inc., adopting the name of its SiC semiconductor division.

Corporate Governance and Leadership

• Amid recent financial challenges, Wolfspeed’s Board of Directors underwent several changes. In March 2025, the Board appointed Robert Feurle as the new Chief Executive Officer, effective May 1, 2025. Two new independent directors, Mark Jensen and Paul V. Walsh, joined the Board in May 2025.
• To oversee its restructuring, the Board established special committees:
  • A Finance Committee was formed in November 2024 to evaluate the Company’s capital structure and financing alternatives, holding over 90 formal meetings in the lead-up to the bankruptcy filing.
  • A Special Investigation Committee was formed in May 2025 to investigate any potential claims or causes of action on behalf of the Company’s estate.

Corporate Organizational Structure

Operations Overview

Wolfspeed’s operations are centered on its advanced, U.S.-based manufacturing footprint, which supports its Materials and Power Devices business segments. The Company’s business model spans the entire SiC value chain, from producing raw wafers to fabricating finished power components.

Manufacturing Assets

• The Company’s primary manufacturing facilities are located in the United States and represent a multi-billion-dollar investment to scale capacity for the global shift toward electrification:
  • Durham, NC: The Company’s headquarters and original campus, housing a SiC wafer fabrication facility and materials production.
  • Mohawk Valley Fab (Marcy, NY): Opened in April 2022, this is the world’s first purpose-built, fully automated 200mm SiC fabrication facility, designed to significantly increase Wolfspeed’s device production capacity.
  • Siler City Facility (Siler City, NC): The world’s largest 200mm SiC materials factory, which began operations in June 2024. The facility is projected to enable a more than tenfold increase in the Company’s materials production capacity.
  • Fayetteville, AR: A key device manufacturing site.
• Plans for a European factory in Germany, announced in February 2023, were placed on indefinite hold in October 2024 as the Company grappled with financial pressures.

Revenue Breakdown

Prepetition Obligations