Wednesday after a report indicated that the company is preparing to file for bankruptcy in the next few weeks. The chip company is looking at a Chapter 11 plan after passing on other debt-restructuring proposals that would have taken place out of court,

Wolfspeed (NYSE:WOLF) shares cratered 40% during post-market trading on Tuesday after the Wall Street Journal reported the semiconductor firm is preparing to file for bankruptcy. The stock had already dropped 10% by the closing bell before plummeting another 40% post-market.

Semiconductor supplier Wolfspeed is preparing to file for bankruptcy within weeks, as it struggles to address its debt pile, the Wall Street Journal reported on Tuesday, citing sources familiar with the matter.