US Semiconductor Companies in Financial Distress (October 2026)
As of 08 October 2026, 15 of 90 US Semiconductor companies analysed (17%) show financial-distress indicators: 2 very weak, 4 weak and 9 on watch. The most common red flags in this sector are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and revenue collapse.
What drives financial distress in Semiconductor
Chip designers, fabs and equipment — highly cyclical; watch inventory-driven sales drops, capex-heavy debt and cash burn.
Most common red flags today: Losses in each of the last 3 years · Operations consume cash · Cash runway under 12 months · Revenue collapse
Semiconductor companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | GCTS | GCT Semiconductor Holding, Inc. Semiconductors |
Very weak | — | — | -44% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 2 | WOLF | Wolfspeed, Inc. Semiconductors |
Very weak | 86% | 11.9% | -58% | Cash runway under 12 monthsLosses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 3 | FABC | Fabric.AI, Inc. Semiconductors |
Weak | 100% | 0.1% | -64% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 4 | SMTK | SmartKem, Inc. Semiconductor Equipment & Materials |
Weak | 100% | 71.6% | -99% | Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash |
Details → | |
| 5 | PRSO | Peraso Inc. Semiconductors |
Weak | — | — | -82% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 6 | POET | POET Technologies Inc. Semiconductors |
Weak | 68% | 0.0% | -66% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 7 | PXLW | Pixelworks, Inc. Semiconductors |
Watch | 100% | 0.0% | -60% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 8 | MOBX | Mobix Labs, Inc. Semiconductors |
Watch | — | — | -90% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 9 | NVTS | Navitas Semiconductor Corporation Semiconductors |
Watch | 24% | 0.0% | -66% | Revenue collapseOperations consume cashLosses in 2 of the last 3 years |
Details → | |
| 10 | ATOM | Atomera Incorporated Semiconductor Equipment & Materials |
Watch | — | — | -66% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 11 | IPWR | Ideal Power Inc. Semiconductors |
Watch | — | — | -59% | Losses in each of the last 3 yearsRevenue collapseOperations consume cash |
Details → | |
| 12 | MX | Magnachip Semiconductor Corporation Semiconductors |
Watch | — | — | -65% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 13 | CBRS | Cerebras Systems Inc. Semiconductors |
Watch | 33% | 5.4% | -46% | Liabilities exceed assets (negative equity)Losses in 2 of the last 3 yearsElevated market-implied default probability |
Details → | |
| 14 | INDI | indie Semiconductor, Inc. Semiconductors |
Watch | — | — | -57% | Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months |
Details → | |
| 15 | QUIK | QuickLogic Corporation Semiconductors |
Watch | 75% | 0.0% | -55% | Losses in each of the last 3 yearsOhlson O-score signals likely failureSteep revenue decline |
Details → |
Frequently asked questions
Which Semiconductor companies are in financial distress?
As of 2026-10-08, 15 US Semiconductor companies show financial-distress indicators (2 very weak, 4 weak and 9 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.
How many Semiconductor companies are in financial trouble?
15 of 90 analysed (17%); 2 are in the 'Very weak' band.
What are the biggest financial risks for Semiconductor companies?
Chip designers, fabs and equipment — highly cyclical; watch inventory-driven sales drops, capex-heavy debt and cash burn. Right now the most frequent red flags are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and revenue collapse.
What happens to shareholders if a company becomes insolvent?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.