Wolfspeed
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Wolfspeed was a Durham, North Carolina semiconductor company (founded 1987 as Cree, renamed Wolfspeed) specializing in silicon carbide (SiC) materials and power semiconductors - SiC wafers, epitaxial materials, discrete power devices and power modules used in electric vehicle powertrains, renewable energy, battery storage and industrial power electronics. It was a pioneer of the 200 mm silicon carbide wafer platform.
02 / Wolfspeed FAILURE REASONS
Failure reasons
Wolfspeed spent billions building 200 mm silicon carbide capacity - burning about $3 billion in cash in the year to June 2024 - while demand, particularly in the EV market, did not ramp fast enough to fill its fabs. Crushed under roughly $6.7 billion of debt, the company entered a prepackaged Chapter 11 bankruptcy reorganization in June 2025 with its major creditors, eliminating about $4.6 billion of debt (around 70%) and cutting annual cash interest expense by roughly 60%.
03 / EVENT HISTORY
Events in the structured record
- Founded
Wolfspeed is founded as Cree in North Carolina, later renamed Wolfspeed as it pivots to silicon carbide.
- 200 mm platform
Wolfspeed transitions parts of its device business to a 200 mm silicon carbide fabrication platform.
- Chapter 11
In June 2025, Wolfspeed enters a prepackaged Chapter 11 bankruptcy reorganization with about $6.7 billion of debt.
- Emergence
On September 29, 2025, Wolfspeed exits Chapter 11 with debt reduced by about $4.6 billion and old shares canceled and replaced.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Wolfspeed was founded in 1987 as Cree in North Carolina, later renamed Wolfspeed, specializing in silicon carbide power semiconductors.
- 02
The company burned about $3 billion in cash in the year to June 2024 building 200 mm silicon carbide capacity, while EV demand did not ramp fast enough.
- 03
In June 2025, Wolfspeed entered a prepackaged Chapter 11 bankruptcy reorganization carrying about $6.7 billion of debt.
- 04
On September 29, 2025, Wolfspeed exited Chapter 11, having eliminated about $4.6 billion of debt and cut annual cash interest expense by roughly 60%.