(Reuters) -Chipmaker Wolfspeed's shares surged about 48% to $1.82 on Tuesday after it said a U.S. court confirmed its Chapter 11 reorganization plan, clearing the way to exit bankruptcy protection in the next several weeks.

Upon emergence from bankruptcy, the company expects to reduce its overall debt by about 70%, or nearly $4.6 billion, and cut its annual total cash interest payments by about 60%.

Wolfspeed makes chips using silicon carbide, which are more energy-efficient and used in applications that require huge amounts of power conversion, such as electric vehicles, solar inverters and industrial power systems.

Approval by the U.S. Bankruptcy Court for the Southern District of Texas "clears the path for us to complete our restructuring process in the coming weeks," CEO Robert Feurle said in a statement on Monday.

Wolfspeed filed for Chapter 11 bankruptcy protection in June, more than a month after raising going concern doubts.