Wolfspeed files for bankruptcy protection to cut worsening debt, shares jump

Wolfspeed said on Monday it has filed for Chapter 11 bankruptcy protection, as the chipmaker grapples with huge debt amid slowing demand from electric vehicle and industrial markets.

Shares of the company – which makes chips using silicon carbide, a more energy-efficient material than traditional silicon – rose 64.5% in extended trading.

Wolfspeed raised going-concern doubts in May, as deepening economic uncertainty stemming from changing U.S. trade policies, combined with weakening demand, triggered a series of financial challenges.