(Reuters) – Wolfspeed forecast quarterly revenue below estimates on Wednesday and said it could book $174 million in restructuring charges for the planned closure of a facility, because the chipmaker deals with sluggish demand from automotive customers.

Shares of the corporate, which counts General Motors and Mercedes-Benz amongst its customers, fell 15% in prolonged trading.

Slowing sales of electrical vehicles have affected demand for the chips Wolfspeed makes using silicon carbide, a more energy-efficient material than standard silicon.

The corporate dropped plans last month to construct a factory in Ensdorf, Germany, citing the slower adoption of EVs in Europe.

In October, rival ON Semiconductor also forecast fourth-quarter revenue and profit below market estimates.

Wolfspeed expects second-quarter revenue from continuing operations to be between $160 million and $200 million, which is below analysts’ estimates of $214.6 million, in response to LSEG-compiled data.

It expects a quarterly adjusted loss per share of 89 cents to $1.14, compared with estimates of a 90 cent loss.

Wolfspeed has seen an increase in costs, because it shuts down its 150mm chip fabrication plant based in Durham to concentrate on the more efficient 200mm chip plant situated in Mohawk Valley.

The corporate expects to book $174 million in restructuring-related costs in the present quarter, after recording $87.1 million in such costs during its fiscal first quarter, which ended on Sept. 29, including for severance.

Its first-quarter revenue was also below expectations. The corporate said its Mohawk Valley facility in Latest York, which has yet to hit full utilization, contributed about $49 million in revenue, similar to the previous quarter.

The corporate said last month it could receive as much as $750 million in funding under the CHIPS and Science Act to support the expansion of its North Carolina-based chip factory and the Mohawk Valley plant.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)