Core Insights - Wolfspeed, a leading manufacturer of silicon carbide (SiC) and gallium nitride (GaN) chips, filed for bankruptcy protection on June 30 due to stalled sales, widening losses, and increasing debt levels, with its stock closing at a record low of $0.39 [1] - On September 29, Wolfspeed emerged from Chapter 11 bankruptcy after reducing its total debt by approximately 70%, extending maturities to 2030, and cutting annual cash interest expenses by roughly 60%, with its stock trading at about $23, representing a significant recovery for investors [2] Company Overview - Wolfspeed specializes in SiC and GaN chips that can operate at higher voltages, temperatures, and frequencies than traditional silicon chips, making them suitable for applications such as LEDs, lasers, 5G base stations, military radars, solar panels, wind turbines, and electric vehicles (EVs) [4] - Unlike other "fabless" chipmakers, Wolfspeed is an integrated device manufacturer (IDM) that produces its chips and power devices in its own foundries, focusing on SiC wafers, SiC power devices, and GaN radio frequency (RF) and power devices [5] Production and Growth Strategy - To increase production of its latest SiC and GaN chips, Wolfspeed opened a new 200mm plant in Mohawk Valley, New York in 2022 and is constructing a larger 200mm plant in Siler City, North Carolina in 2023, while gradually phasing out older 150mm chip production in Texas and North Carolina [6] - From fiscal 2021 to 2025, Wolfspeed's revenue grew at a compound annual growth rate (CAGR) of 9.6%, increasing from $526 million to $758 million, primarily benefiting from a shift towards wide-bandgap (WBG) SiC and GaN chips in various markets [7] Challenges and Future Outlook - Despite emerging from bankruptcy and restructuring, Wolfspeed faces long-term challenges, including a deceleration in revenue growth and declining adjusted gross margins over the past three years [8][9] - The new CEO expresses optimism about the company's growth potential across multiple markets, although the stock is perceived as cheap, indicating potential investment opportunities [9]