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05/12/2025
Friday
THIS DAY IN HISTORY:
5 December 
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
5 December
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
U.S. semiconductor manufacturer restructures debts amid crisis
The U.S.-based semiconductor manufacturer Wolfspeed Inc. has announced its intention to initiate bankruptcy proceedings. The company has already reached preliminary agreements with key creditors. Among them are the "subsidiary" of Renesas Electronics Corporation and the investment group Apollo Global Management.
According to an official statement, the company plans to restructure the debt, reducing the total debt by 70%. Now it is about $6.5 billion. At the same time, it is planned to attract investments in the amount of $275 million. This should support operational activities during the financial recovery period. By the beginning of this spring, the organization had about $1.33 billion of available assets.
Wolfspeed expects to complete the insolvency process by the beginning of the fourth quarter this year. The submitted application will be accompanied by a pre–agreed restructuring plan, a model in which the main parameters of recovery are approved before the procedure begins. At the same time, the company does not cease its activities and intends to fulfill its obligations to customers and partners.
Information about financial difficulties became public in May 2025. At that time, the company's management pointed to several factors that affected the sustainability of the business: declining market demand, uncertainty in international trade, and the refusal of the new US administration to support chip manufacturers. Earlier, the authorities promised the company support in the form of concessional loans and various grants in the amount of $ 1.75 billion.
The origins of the current problems go back three years. It was then that Wolfspeed encountered disruptions in the production process of one of its key enterprises. The specialization of this plant was plates based on carbide and silicon. This had a negative impact on the producer's stock prices, which fell by 96%.
Two years ago, the company was forced to suspend a project to build a new facility in Germany. And this is despite the support from the EU, which is striving for technological independence. Its price was $3 billion.
Wolfspeed has collaborated extensively with U.S. government agencies, including DARPA, the Air Force, and the National Standards Institute. The company produced LEDs, electronic components, and specialized chips. Its head office is located in Durham, North Carolina.
Photo: Freepik
According to an official statement, the company plans to restructure the debt, reducing the total debt by 70%. Now it is about $6.5 billion. At the same time, it is planned to attract investments in the amount of $275 million. This should support operational activities during the financial recovery period. By the beginning of this spring, the organization had about $1.33 billion of available assets.
Wolfspeed expects to complete the insolvency process by the beginning of the fourth quarter this year. The submitted application will be accompanied by a pre–agreed restructuring plan, a model in which the main parameters of recovery are approved before the procedure begins. At the same time, the company does not cease its activities and intends to fulfill its obligations to customers and partners.
Information about financial difficulties became public in May 2025. At that time, the company's management pointed to several factors that affected the sustainability of the business: declining market demand, uncertainty in international trade, and the refusal of the new US administration to support chip manufacturers. Earlier, the authorities promised the company support in the form of concessional loans and various grants in the amount of $ 1.75 billion.
The origins of the current problems go back three years. It was then that Wolfspeed encountered disruptions in the production process of one of its key enterprises. The specialization of this plant was plates based on carbide and silicon. This had a negative impact on the producer's stock prices, which fell by 96%.
Two years ago, the company was forced to suspend a project to build a new facility in Germany. And this is despite the support from the EU, which is striving for technological independence. Its price was $3 billion.
Wolfspeed has collaborated extensively with U.S. government agencies, including DARPA, the Air Force, and the National Standards Institute. The company produced LEDs, electronic components, and specialized chips. Its head office is located in Durham, North Carolina.
Photo: Freepik
27.06.2025
