January 16, 2025 /SemiMedia/ — Wolfspeed has announced the closure of its plant in Farmers Branch, Texas, and listed it for sale. The facility spans 26 acres and includes four buildings, sold as a package. Key features include a 14MW data center, expandable to 28MW, and a 162,500-square-foot semiconductor plant equipped with labs, workshops, and office spaces.

The decision aligns with the company’s strategy to streamline operations and focus on 200mm silicon carbide (SiC) wafer production in response to declining demand for 150mm wafers. The closure will result in 75 job cuts, with production expected to cease soon.

Wolfspeed has also indefinitely paused plans to build a new facility in Saarland, Germany. Instead, the company secured $750 million in funding under the CHIPS Act through an agreement with the U.S. Department of Commerce. These funds will support the construction of new plants in North Carolina and New York, with its primary power device manufacturing shifting to New York.

Despite a positive outlook for the semiconductor industry, Wolfspeed faces financial challenges. In 2024, the company’s stock plummeted 84.7%, with over $750 million in losses reported in the past 12 months and long-term debt standing at approximately $3 billion. Leadership instability has added to the pressures, with former CEO Gregg Lowe dismissed in November as the company searches for new leadership.

The closure and strategic pivot underscore Wolfspeed’s efforts to adapt to market dynamics and financial strain, though its path to profitability remains uncertain.