On September 8, 2025, Wolfspeed, a worldwide frontrunner in silicon carbide technology, made a significant announcement. It revealed that its reorganization plan had secured approval from a U.S. court. The company anticipates the completion of the Chapter 11 restructuring process in the upcoming weeks. This move is set to slash its debt by roughly 70%, which translates to about $4.6 billion.

The market reacted swiftly and enthusiastically to this news. Following the announcement, Wolfspeed's stock price experienced a meteoric rise, surging over 60% during Tuesday's trading session and hitting a peak of $1.979.

The reorganization plan garnered widespread support. Over 97% of the holders of senior secured notes and more than 67% of the holders of convertible notes threw their weight behind it. As part of the reorganization plan, Wolfspeed is poised to eliminate the majority of its unsecured debt. Simultaneously, it has secured new financing commitments, which will provide the company with ample liquidity to fuel its operations.

Company CEO Robert Feurle expressed his elation, stating that the court's approval serves as a powerful endorsement of the company's core business strengths, its dominant position in the market, and its immense potential for future growth. Wolfspeed has established itself as a global leader in silicon carbide technology. Its product portfolio is diverse, encompassing silicon carbide materials, power modules, discrete power devices, and power bare die products. These offerings are tailored to cater to high-growth markets, including electric vehicles, renewable energy, and 5G communications.