Wolfspeed is preparing to file for bankruptcy within a matter of weeks as the publicly traded chip component maker struggles to address its debt pile, according to sources familiar with the matter.

After passing on multiple debt-holder proposals to restructure its debt out of court, Wolfspeed is aiming to hash out a chapter 11 plan that would have the support of a majority of its creditors, said the people.

The manufacturer of silicon-carbide wafers and semiconductor components primarily in the U.S. was poised to benefit from government funding as a result of Washington’s attempts to bring more semiconductor manufacturing stateside.