On September 9th, chipmaker Wolfspeed saw a "highlight moment" in its stock price, surging approximately 48% to $1.82. The key driver behind this rally: a U.S. court approved its Chapter 11 reorganization plan, clearing a critical path for the company to exit bankruptcy protection in the coming weeks.
Once it successfully exits bankruptcy protection, Wolfspeed’s financial position will improve significantly. Its total debt is expected to be reduced by roughly 70% — nearly $4.6 billion — while its annual cash interest expenses will plummet by about 60%. This will undoubtedly ease the long-standing financial burden on the company, allowing it to operate with a lighter load.
Wolfspeed specializes in silicon carbide (SiC) chip manufacturing. These chips are known for their energy efficiency and are widely used in areas with high demand for power conversion, such as electric vehicles (EVs), solar inverters, and industrial power systems.
Robert Feurle, Wolfspeed’s CEO, could barely contain his excitement in a statement, noting that the approval from the U.S. Bankruptcy Court for the Southern District of Texas "paves a smooth path" for the company to complete its reorganization process in the coming weeks.
ICgoodFind’s perspective, the approval of Wolfspeed’s reorganization is highly significant. It will not only reshape the company’s own development trajectory but also bring new changes to the SiC chip industry landscape — its future development deserves continued attention.
