Wolfspeed, one of the world’s leading SiC wafer manufacturers, is preparing to apply for bankruptcy law, causing a major ripple in the EV power semiconductor market.
🟦SiC power semiconductor giant Wolfspeed prepares to file for bankruptcy – Why is it stuck in a fast-growing market?
Semiconductor manufacturer Wolfspeed (Wolfspeed) has a debt of about $ 6.5 billion (about 1 trillion yen) and has entered the preparation for the application of Chapter 11 of the Federal Bankruptcy Code (Chapter 11) for debt restructuring. The company is a leading manufacturer of silicon carbide (SiC) power semiconductors, and is the largest company in the industry with a global market share of 33.7%, especially in SiC wafers.
🟦 Why selection is inevitable in fast-growing markets
The SiC power semiconductor market is expected to grow from approximately $2.2 billion in 2023 to more than $10 billion in 2030 on the back of the rapid spread of EVs. However, the intensification of competition had already begun, and the price offensive of Chinese manufacturers and the vertical integration strategies of major Western players put Wolfspeed’s cost structure in a relatively difficult situation.
While the company benefited from the U.S. government’s semiconductor subsidy policy, it continued to make large-scale capital investments, resulting in a deterioration in cash flow. As of the end of March 2025, the company had only $1.3 billion in cash, raising doubts about its future going concern.
🟦 Summary
The news that Wolfspeed is preparing to file for bankruptcy raises concerns about the power semiconductor supply system that supports the global EV and renewable energy markets. As one of the largest companies in the industry, the impasse is due to intensifying competition and the heavy investment burden.
The slowdown in demand for electric vehicles (EVs), which is a typical application of SiC semiconductors, is still having a significant impact.
