On Thursday, the company named P Te Robert Fural of the chip industry as its main business as the main businessman, after which he fired the top boss Greg Lowe in November.
Wolfspeed is struggling with the slowdown in the demand for automotive customers, which has imposed its profitability. In November, the company said it closed the 50mm device fabrication plant in Durham, North Carolina and was planning to release 20% of its employees.
Meanwhile, the Wolfspid is waiting for about 50 750 million in the Federal Fund under the US Chips Act, the Landmark 2022 Bipartisan law that promised $ 52.7 billion in subsidy for domestic semiconductor chips manufacturing and production.
However, earlier this month, President Donald Trump said that US legislators should get rid of the law and use the amount to pay the debt.
CFRA Senior Analystics Brooks Idol said, “The highest dollar lare chips grant ended so that Wolfspeed’s Chips Act Grant Biden was not officially given, so that it would be particularly susceptible to pulling under the new administration.
Idol said, “Not receiving the grant” will be devastating to Wolfspeed, significant reorganization is required to save cash. “
The Chips Act is important for Wolfspeed because it provides the funds needed to accelerate its silicone carbide semiconductor manufacturing expansion.
Shares of Wolfspid were last at 2.81D at Lar. The stock has lost more than 59% of its value this year, including the loss of the session so far.
According to TE RTAX estimates, about 32.5% free float of Wolfspid was in a short position until March 27. One short interest suggests that the market expects stock prices to decline.
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