Catenaa, Friday, March 28, 2025- Wolfspeed’s shares fell by about 48% on Friday, hitting a 27-year low, after the chipmaker appointed a new CEO amid its struggles to improve its financial position.
The company on Thursday named chip industry veteran Robert Feurle as its chief executive effective May 1, after it ousted Gregg Lowe without cause in November.
The chipmaker has been grappling with a slowdown in demand from automotive customers, which has crimped its profitability. In November, the company said it closed a 50mm device fabrication plant in Durham, North Carolina and was planning to lay off 20% of its employees.
Meanwhile, Wolfspeed is also waiting on about $750 million in federal funding under the US CHIPS Act, the landmark 2022 bipartisan law which promised $52.7 billion in subsidies for domestic semiconductor chips manufacturing and production.
However, earlier this month, President Donald Trump said US lawmakers should get rid of the law and use the proceeds to pay debt.
The company is also looking to capitalize on the growing demand for chips that are manufactured using silicon carbide technology. It has doubled down on a 200-millimeter silicon carbide fab, which improves efficiency and production capacity.
The CHIPS Act is critical for Wolfspeed as it provides essential funding to accelerate its silicon carbide semiconductor manufacturing expansion.
Shares of Wolfspeed were last trading at $2.81. Including the session’s losses so far, the stock has lost more than 58.33% of its value this year.
According to estimates by Ortex, about 32.5% of Wolfspeed’s free float was in a short position as of March 27. A higher short interest indicates that the market expects the stock price to decline.
