Wolfspeed Seeks Expansion Beyond EVs Amid Financial Restructuring and Dormant Chatham County Factory
Wolfspeed, a semiconductor manufacturer, is pivoting from its focus on electric vehicles to expand into defense, aerospace, and data centers. The company, which emerged from bankruptcy, has closed its Durham factory and laid off one-third of its workforce to save $200 million annually. Its Chatham County plant remains largely inactive due to low demand. Wolfspeed is also investing in new 300mm silicon carbide wafers, aiming for applications beyond power devices. The company's stock fell 10% following disappointing earnings and lowered revenue guidance.
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Wolfspeed is transitioning from a focus on electric vehicles to broader markets including defense, aerospace, and data centers. Following bankruptcy, it closed its Durham factory and reduced its workforce by one-third, achieving $200 million in annual savings.
Its Chatham County plant, finished but dormant, requires increased demand to activate its 1,800-worker capacity. The company announced a new 300mm silicon carbide wafer aimed at applications beyond power devices, such as in data centers. Despite a 10% stock drop after missing earnings expectations, Wolfspeed is preparing to scale operations as demand increases.
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