June 12, 2025 /SemiMedia/ — Wolfspeed, a U.S. manufacturer of silicon carbide (SiC) semiconductors, has announced the layoff of 73 employees—including manufacturing managers, technicians, and engineers—at its materials plant in Salisbury, North Carolina. The move comes in response to weakened demand for SiC chips and aligns with the company’s broader strategy to optimize manufacturing capacity.

In official notices to state regulators and public statements, Wolfspeed said: “The workforce adjustment aligns staffing with recent customer demand. We appreciate the contributions of those affected and will provide support during the transition.” The company stressed that the adjustment is part of a capacity realignment rather than a withdrawal of long-term commitment to its Salisbury facility.

Wolfspeed’s transformation plan includes a phased shutdown of older lines at Salisbury and a shift of operations to newer, higher‑efficiency plants in Siler City, North Carolina, and Mohawk Valley, New York. These strategic shifts aim to improve production efficiency and margins for SiC chips.

The company is making this move amid external challenges: softening SiC pricing and demand, uncertain access to the $1.75 billion in U.S. federal funding it previously cited, and a looming $575 million debt maturity within the next year. Wolfspeed told investors in May it is evaluating various financing and restructuring options, including potential Chapter 11 bankruptcy, should federal support fall through.