In May, Wolfspeed announced that it faced economic uncertainty, also coupled with the US-American political situation, whose changing trade policies put the industry under strain. However, the financial situation had likely started going sour far earlier, as the company had also announced that it was putting its planned semiconductor factory together with ZF on hold in Germany. The plant had initially been announced in early 2023, and was set to deliver semiconductors for customers such as Mercedes.
Now, Wolfspeed has worked out a restructuring agreement, which will see $275 million in fresh financing backed by some existing creditors and help reduce debt by $4.6 billion. It still needs to seek regulatory approval for the plan, but…