Wolfspeed(US:WOLF) 智通财经网·2025-07-01 05:32Core Viewpoint - Wolfspeed, a silicon carbide semiconductor manufacturer, has voluntarily filed for Chapter 11 bankruptcy protection to restructure its debt, with plans to complete the restructuring by the end of Q3 this year. This is one of the largest bankruptcy filings of the year, second only to Azul SA and Ligado Networks [1]. Group 1: Bankruptcy and Restructuring - Wolfspeed's total debt before restructuring was $6.5 billion, and the company plans to reduce approximately 70% of its debt (around $4.6 billion) through the restructuring process [1]. - The company aims to secure $275 million in new financing as part of the restructuring agreement with its creditors, which include Apollo Global Management and Renesas Electronics [1][2]. - Wolfspeed's current cash flow is approximately $1.3 billion, sufficient to maintain normal operations during the restructuring without interrupting services to customers or employee compensation [1]. Group 2: Market Position and Strategy - Wolfspeed was previously a division of Cree, focusing on LED lighting and later transitioned to silicon carbide semiconductors, achieving a market share of 62% in 2018 [2]. - The company has established partnerships with major automotive manufacturers like General Motors and Tesla, focusing on the production of 200mm silicon carbide wafers [2][3]. - Silicon carbide is a critical material for electric vehicle power semiconductors and renewable energy applications, with increasing demand driven by the automotive sector [2]. Group 3: Financial Challenges and Expansion Plans - The company's aggressive expansion strategy, including a $1 billion investment in a silicon carbide wafer plant in New York, has led to financial difficulties due to misjudging market conditions [3]. - In FY2024, Wolfspeed's capital expenditures reached $2.1 billion, while revenue was only $807 million, resulting in continued losses [3]. - The company faced a crisis in 2024, leading to the closure of a wafer plant in North Carolina and the cancellation of a $3 billion plant in Germany, alongside significant layoffs [4].