Latest news with #CHIPSandScienceActof2022
Yahoo
21-05-2025
- Business
- Yahoo
Wolfspeed Stock Plummets 70% on Report Firm Preparing to File for Bankruptcy
Wolfspeed reportedly is considering filing for bankruptcy within weeks as it struggles with mounting debt. The Wall Street Journal noted that the silicone carbide chipmaker has turned down several plans by creditors to restructure its debt. The news sent Wolfspeed shares to an all-time (WOLF) shares cratered Wednesday, a day after a report that the struggling silicone carbide chip manufacturer would be filing for bankruptcy "within weeks." The Wall Street Journal reported Tuesday afternoon that after the company rejected several proposals by creditors to restructure its debt, Wolfspeed was looking at a plan to use Chapter 11 bankruptcy in a way that's acceptable to a majority of debtholders. The company has been under financial pressure for months, and that was exacerbated in March when outgoing executive chair Tom Warner warned Wolfspeed may lose out on $750 million in grants and $1 billion in tax credits it had been expecting under the CHIPS and Science Act of 2022. In addition, this month the company posted disappointing results and added two board members to assist in dealing with the debt. Investopedia has reached out to Wolfspeed for comment but has not received a response. The news sent Wolfspeed shares to an all-time low Wednesday morning, and they're now trading at less than $1 each. Read the original article on Investopedia
Yahoo
20-05-2025
- Business
- Yahoo
County Commissioner Al French believes it's too early to count out tech hub funding
May 19—Patience is a virtue, and Spokane County Commissioner Al French wants the region to keep that front of mind while waiting on a nearly $50 million federal investment in an Inland Northwest aerospace manufacturing hub. On Friday, the Trump administration announced the cancellation of a $48 million grant awarded to the Spokane-Couer d'Alene area, alongside grants in five other regions awarded as part of the U.S. Department of Commerce Tech Hubs program. Funding for the program was included in the CHIPS and Science Act of 2022, a bipartisan bill championed by Washington Sen. Maria Cantwell that devoted $280 billion towards advancing scientific research and manufacturing to keep the U.S. competitive internationally. The local award was intended for the conversion of the former Triumph Composite Systems Inc. facility in Airway Heights into a one-of-a-kind manufacturing facility — the first in the nation to produce, on a large scale, advanced thermoplastic materials that can replace metal to make airplanes lighter and more fuel efficient. French represents the West Plains on the county commission and advocated for the project on the local and federal levels. The cancellation comes just four months after the award was granted under the Biden administration, stirring disappointment from the region's elected leaders on both sides of the aisle at the local and national level Friday. French believes the Inland Northwest's discomfort won't last too long, though. He said the cancellation is not out of line with the Trump administration's broader efforts at the federal level, and that "ultimately, the administration is going to come around and see all the value" of the Spokane-Coeur d'Alene hub. "They feel like they've come in with a mandate, and they want to try and make sure that programs meet their priorities," French said. "It's unfortunate that it hit the tech hub, but I think as you look at all of the metrics that the Trump administration is trying to accomplish with regard to, whether it's Build America or creating more jobs or more technology, the tech hub does all of those things and some." In his statement announcing the reversal, Commerce Secretary Howard Lutnick said he intends to release a new call for applications this summer and announce a new round of awards in early 2026. "It's unfortunate, but I'm more of a long-term guy than a short-term guy," French said. "And I think long-term, this is a good investment for the country, and it's a good investment for Spokane County and the aerospace sector, and will end up surviving any kind of scrutiny that they put it through."
Yahoo
09-05-2025
- Business
- Yahoo
Wolfspeed Stock Plummets, Firm Names 2 Board Members to Help Deal With Lenders
Wolfspeed reported fiscal third-quarter sales declined and its loss widened as revenue at the chipmaker's Materials Products division slumped. The struggling firm also added two new board members to help deal with its lenders. In March, Wolfspeed warned that it might not receive money and tax breaks it was to scheduled to get from the CHIPS (WOLF) shares plunged 25% Friday, a day after the struggling silicone carbide chipmaker's revenue declined and its loss increased as sales at its Materials Products unit fell. In addition, the company added two new board members as it works to deal with its debt. Wolfspeed reported fiscal third-quarter revenue dropped nearly 8% year-over-year to $185.4 million, missing Visible Alpha estimates. It posted an adjusted loss of $0.72 per share, $0.10 per share wider than a year ago. Materials Products segment revenue tumbled 21% to $77.9 million. Revenue at its Power Products division was up 5% to $107.5 million. Chair Tom Werner explained that Wolfspeed has made significant progress in its efforts in "strengthening our capital structure, improving our path to profitability, and raising cost effective capital to support our growth plan." Werner added that the company is continuing to work closely with its lenders "on ways to address our capital structure so that Wolfspeed has a strong financial foundation to support its continued success." The semiconductor firm was already struggling when Werner, then the outgoing interim Executive Chair, warned in March that Wolfspeed may not realize up to $750 million in grants plus $1 billion in tax credits from the CHIPS and Science Act of 2022. That sent shares cratering. In a press release separate from the financial report, Werner announced that Paul Walsh and Mark Jensen were appointed to the board. Werner explained that the two bring experience in dealing with lenders that "will be critical to our efforts in reaching an outcome that will support our long-term success." Shares of Wolfspeed have lost half their value this year. Read the original article on Investopedia
Yahoo
24-04-2025
- Business
- Yahoo
Design flaws undercut law to bring chip manufacturing back to US, expert says
On the most recent Bring It Home Podcast, host JP Hampstead spoke with Julius Krein, founder and editor-in-chief of American Affairs, about U.S. industrial policy post-CHIPS Act. The CHIPS and Science Act of 2022 aims to bring microchip manufacturing back to the U.S. after several decades of companies offshoring the technology. According to a report by the Council on Foreign Relations – a nonpartisan think tank headquartered in New York – the U.S. produced 40% of the world's semiconductor supply in 1990. Today, the U.S. produces only 12% as Taiwan has ramped up to over 60% of the world's supply of semiconductors. Krein dove into the historical context, challenges and prospects of America's industrial strategy. He described U.S. industrial policy as targeted interventions aimed at boosting specific sectors to improve economic competitiveness and national security. He also critiqued traditional views that often portray such policies as economic externality management, arguing instead that U.S. industrial policy should strategically lower the cost of capital for essential projects to boost growth. Krein said the CHIPS Act has had its limitations, pointing out its short-term focus and lack of a mechanism for ongoing policy adjustments. He said that mechanism would be vital for the long-term competitiveness of the U.S. semiconductor industry. 'I think the CHIPS Act was necessary,' Krein said. 'But in sort of design and execution, I think it had two problems: one in terms of policy design, one in terms of more framing and rhetoric.' 'I think it's a critical sector, but I'd like to think or at least hope that we could do both a lot better on policy design as well as kind of building a larger framework and ecosystem for all of these projects,' he continued. Other headlines discussed in this episode included: Recent announcements of large investments by tech conglomerates in the U.S., including Taiwan Semiconductor Manufacturing Co.'s commitment to extending its semiconductor manufacturing operations with a $100 billion investment. Apple's intention to expand its U.S. manufacturing footprint with a $500 billion investment, focusing on enhancing its supply network. The Stargate project, a joint venture by OpenAI, Softbank and Oracle aimed at developing AI infrastructure with a $500 billion pledge, reflecting broader trends toward investing in AI as a catalyst for new business models. Bring It Home dives into emerging industry trends and the push for reindustrialization in North America. The podcast is available on YouTube, Spotify and Apple Podcasts. The post Design flaws undercut law to bring chip manufacturing back to US, expert says appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Wolfspeed Stock Plunges on CHIPS Act Funding Concerns
Wolfspeed shares lost nearly half their value Friday as comments by the semiconductor firm's outgoing interim Executive Chairman brought concerns about whether it will secure federal funding for its expansion efforts. The company announced last October it was in line to receive $750 million in grants and $1 billion in tax credits from the CHIPS and Science Act of 2022. Outgoing interim Executive Chairman Thomas Werner raised investor worries about whether the money would be of Wolfspeed (WOLF) cratered Friday after the semiconductor maker's outgoing interim Executive Chairman raised investor concerns the firm may lose out on millions in federal money from the CHIPS and Science Act of 2022. According to Axios, Thomas Werner told reporters that the company is being managed to be not overly reliant on CHIPS funds or tax incentives. Last October, Wolfspeed said it had signed a preliminary agreement with the Department of Commerce to receive up to $750 million in direct funding from the CHIPS program. In addition, it expected to get $1 billion in tax refunds under the advanced manufacturing tax credit that was also part of the CHIPS law. The company planned to use the money, along with $750 million from a consortium of investment funds, as part of its expansion of operations in North Carolina and New York. Werner added that Wolfspeed anticipates a final decision on the CHIPS grant by late summer, although it believes the legislation will change in some fashion, Axios reported. Werner stepped into the interim Executive Chairman role when Wolfspeed fired CEO Gregg Lowe last November. Prior to that, the struggling company began a restructuring plan that included facility closures and consolidation. Yesterday, Wolfspeed announced that former Micron Technology (MU) executive Robert Feurle would take over the CEO position May 1, and that Werner would "return as Chairman of the Board following the transition." Wolfspeed shares sank 48% intraday Friday, trading close to their all-time lows. Read the original article on Investopedia Sign in to access your portfolio
