(Reuters) -Wolfspeed shares surged more than 25% before the bell on Tuesday, after the chipmaker successfully emerged from Chapter 11 bankruptcy with a substantially reduced debt load.

The move has restored investor confidence in the company’s prospects to become a leading provider of silicon carbide semiconductors, known for their superior energy efficiency, to electric-vehicle makers amid growing electrification and increasing chip content in automobiles.

“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era,” CEO Robert Feurle had said on Monday.

“We are well positioned to capture rising demand in end-markets, such as AI, EVs, industrial and energy, that are rapidly growing and recognizing silicon carbide’s potential,” Feurle said.

Wolfs

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