Durham, NC — Wolfspeed, the Durham-based silicon carbide device manufacturer, announced Wednesday that it will reduce its workforce by 20% as part of a strategic shift to streamline its operations and focus exclusively on 200mm silicon carbide (SiC) devices. The decision was disclosed in the company’s first-quarter earnings report for fiscal year 2025.
As part of the restructuring plan, Wolfspeed will close its 150mm production facility in Durham, marking a shift from its original operations. Additionally, the company has closed its Farmers Branch, TX location and has permanently suspended operations in Germany. These actions, according to CEO Gregg Lowe, are designed to improve performance and align the company with current market trends.
“To improve performance, we are taking steps to improve efficiency, align our business with current market conditions, and become the first silicon carbide company to switch to pure-play 200mm,” Lowe said. He further noted that moving to a fully 200mm platform will streamline costs, with projected annual savings of $200 million.
The announcement follows recent developments in Wolfspeed’s growth strategy, including up to $750 million in financing approval for a new facility in Siler City, NC. This financing is part of a broader $2.5 billion plan aimed at expanding Wolfspeed’s U.S. energy production capabilities.
While the 150mm production facility in Durham will close, the company’s headquarters and other facilities on the Durham campus, including materials and epi plants, will continue operations. Wolfspeed originally planned to transition from 150mm to 200mm SiC production as early as 2021 but maintained 150mm capacity due to high demand at that time.
The company remains committed to its North Carolina operations, citing its Siler City expansion, which is expected to create thousands of jobs in the area. Wolfspeed reported consolidated revenue of approximately $195 million for the first quarter of 2025.
