Wolfspeed's under-construction factory in Siler City, N.C., in February. Photo: Zachery Eanes/Axios
Durham semiconductor firm Wolfspeed is cutting more than 70 jobs at its new factory in Siler City, according to a notice it shared with the N.C. Department of Commerce.
Why it matters: The cuts are the latest in a string of layoffs the struggling chip maker has made, but these are the first to occur at its $5 billion materials plant in Chatham County, which is nearing its official opening.
In February, the company told Axios about 200 people were already working at the factory, though the goal has been to reach 1,800 jobs there, a number outlined in an incentives agreement it made with the state.
Driving the news: Wolfspeed, which is struggling under a $6.4 billion debt load that could force it into bankrupcty, said in the letter to the state that the layoffs were necessary "due to business challenges."
The company has struggled to balance large investments into its manufacturing capabilities with a decline in demand for its chips in electric vehicles.
What they're saying: In a statement, a Wolfspeed spokesperson said the layoffs are due to aligning the number of workers at the plant with "near-term customer demand."
"This action is independent of the company's ongoing capital-structure review," the spokesperson added. "The Siler City facility is central to Wolfspeed's long-term silicon carbide growth strategy and remains on track to open in the near future."
