Silicon carbide semiconductor giant Wolfspeed has officially submitted a restructuring application, planning to reduce nearly $4.6 billion in debt.

Jin10 Data reported on July 1st that silicon carbide semiconductor giant Wolfspeed announced on June 30th local time that it has taken the next steps to implement the restructuring support agreement previously reached with major creditors. The company has voluntarily filed for restructuring under Chapter 11 of the U.S. Bankruptcy Code, expecting to complete the restructuring by the end of the third quarter of this year. Wolfspeed stated that upon completion of the above process, the company expects its overall debt to be reduced by approximately 70%, equivalent to a reduction of about $4.6 billion. “By taking this action, the company hopes to better execute its long-term growth strategy and accelerate its path to profitability.” Wolfspeed will continue to operate normally throughout the process, including delivering silicon carbide materials and devices to customers and making normal payments to suppliers.