Wolfspeed makes silicon carbide (SiC) semiconductors — specifically SiC substrates (wafers) and SiC power devices — and claims to be the largest producer of SiC materials in the world. SiC outperforms conventional silicon at higher voltages, temperatures, and switching frequencies, making it the preferred material for EV powertrains, EV charging infrastructure, solar inverters, industrial motor drives, and increasingly AI data center power. Wolfspeed operates two segments: Power Devices (~55-58% of revenue), which includes MOSFETs, Schottky diodes, and power modules primarily for automotive and industrial customers; and Materials (~42-45% of revenue), which are SiC and GaN epitaxial wafers sold to third-party device manufacturers. The business model is capital-intensive and scale-dependent — revenue is driven by wafer and device volumes multiplied by average selling prices. A central feature of the business today is the transition from 150mm to 200mm wafer manufacturing, anchored by its new Mohawk Valley Fab in Marcy, NY. Larger wafers produce more die per run at lower unit costs, so as production shifts to Mohawk Valley, margins are expected to improve. Wolfspeed works with customers years ahead of production through design-win cycles that create customer stickiness, and the company reports a cumulative design-win backlog exceeding $12B. As of June 2025, Wolfspeed filed for Chapter 11 bankruptcy to restructure its balance sheet, with a plan to convert a large portion of convertible debt into equity, with Renesas expected to hold roughly 39% of new common stock post-emergence.