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Wolfspeed, Inc. has received $192.1 million in cash tax refunds from the advanced manufacturing tax credit under Section 48D. Funds include $186.5 million owed to the Company for both fiscal 2023 and fiscal 2024 taxes, as well as accrued interest. This announcement reflects a portion of the approximately $1 billion total Section 48D cash tax refunds that the Company expects to receive.
As of the end of the second quarter of fiscal 2025, the Company had accrued a total of $865 million in Section 48D tax credits. The Company expects receipt of more than $600 million in cash tax refunds in fiscal year 2026. Wolfspeed intends to use the tax credit proceeds to strengthen its capital structure and for general corporate purposes. The Company expects that its cash balance at the end of its fiscal third quarter of 2025 will be approximately $1.3 billion, inclusive of these recently received 48D cash tax credits.
Reaffirming Guidance:
The Company is reaffirming its business outlook for the third quarter of fiscal 2025 as follows:
- Revenue from continuing operations of $170 million to $200 million
- Non-GAAP gross margin of (3)% to 7%
- Non-GAAP operating expenses of $99 million to $104 million
- GAAP net loss of $(295) million to $(270) million, or $(1.89) to $(1.73) per diluted share
- Non-GAAP net loss of $(138) million to $(119) million, or $(0.88) to $(0.76) per diluted share
In addition, the Company is also reaffirming the guidance that it issued in its Form 8-K filed on March 7, 2025:
- Fiscal 2026 capital expenditures of approximately $150 million to $200 million
- Fiscal 2027 capital expenditures of approximately $30 million to $50 million
- Adjusted EBITDA break-even point of $800 million of annual revenue upon completion of the operational simplifications, additional restructuring actions, including the closure of North Carolina Fab, and other cost reduction initiatives
- $200 million of unlevered operating cash flow in fiscal 2026 based on targeted fiscal 2026 revenue growth
- Positive levered free cash flow in fiscal 2027 following completion of refinancing transactions
Wolfspeed continues to explore alternatives with regard to its convertible notes, in partnership with its advisors, and remains in a dialogue with lenders, including Apollo and Renesas. The Company also maintains constructive dialogue with the White House, its legislators, and the U.S. Department of Commerce to secure federal funding and on ways Wolfspeed can support the Trump Administration’s efforts to reinforce U.S. industrial leadership in semiconductors, secure domestic supply chains, and reshore the manufacturing of critical mineral derivatives, including semiconductor wafers.
Original – Wolfspeed
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Wolfspeed, Inc. announced the appointment of Robert Feurle as Chief Executive Officer (CEO), effective May 1, 2025, following a comprehensive internal and external search by the Board of Directors. Feurle succeeds Thomas Werner, who is serving as interim Executive Chairman and will return as Chairman of the Board following the transition.
Feurle brings more than 20 years leading global organizations that develop the most advanced power semiconductor solutions in automotive and other high voltage applications, including both silicon and silicon carbide. A citizen of both the United States and Germany, Feurle will be returning to the United States where he previously spent a decade in executive roles at Micron Technology and will be relocating to the Company’s headquarters in Durham, North Carolina, where he will work closely with Werner to ensure a smooth transition.
Most recently, he served as Executive Vice President and General Manager of the Opto Semiconductors Business Unit at ams-OSRAM AG, where he was responsible for managing more than 10,000 employees in sites and factories around the world. There, he expanded market share and accelerated the introduction of cutting-edge LED and Laser products into automotive and new advanced LED applications. Previously, at Infineon Technologies, Micron Technology, Qimonda, and Siemens, Feurle successfully managed strategic initiatives that enhanced competitiveness and increased revenue growth in challenging global markets.
“We are excited to welcome Robert to Wolfspeed to lead the Company into its next chapter. With a history of delivering significant operational enhancements and profitability improvements, and deep industry expertise, we are confident that Robert is the right individual to take the helm during this stage in the Company’s lifecycle. His history of driving success and operational excellence in each of his previous roles is a significant contributor to our decision to appoint him as CEO. The Board and I look forward to working closely with Robert to successfully navigate near-term market dynamics and ultimately position the Company for long-term value creation,” said Thomas Werner, Executive Chairman.
“I am grateful for the opportunity to lead Wolfspeed during such a transformative period. During my tenure at Infineon, I became intimately familiar with the silicon carbide industry and saw firsthand Wolfspeed’s impressive leadership in the space. I believe we have just begun to scratch the surface of the vast potential of silicon carbide. Wolfspeed’s world-class facilities, exceptional talent, and robust intellectual property, position us to maintain and expand our market leadership,” said Feurle.
Throughout his career, Feurle has consistently driven successful growth strategies, innovative product development, and market expansion initiatives. At ams-OSRAM, Feurle significantly enhanced the market presence of the Opto Semiconductors division through accelerated innovation in advanced compound semiconductor solutions.
Previously at Infineon Technologies, he strategically expanded market opportunities by spearheading new product introductions in the field of IGBT and silicon carbide technologies and leading a global business unit focused on competitive differentiation and profitable growth. He was also part of the team at Infineon supporting the proposed acquisition of the Wolfspeed operations in 2016. His deep experience in market-driven technology innovation and strategic business scaling makes him uniquely suited to advance Wolfspeed’s global leadership in silicon carbide technology.
Feurle joins the company as it continues to focus on improving financial performance and accelerating its path to generate positive free cash flow, take aggressive steps to strengthen its balance sheet and raise cost-effective capital required to support its long-term growth plan.
“With all of the Company’s competitive advantages I feel very confident that we will be able to work through this transformative period to refresh the operating plan, improve financial performance and accelerate our path to positive free cash flow.” Feurle continued, “I look forward to working closely with the Board and our talented team to deliver exceptional value to all of our stakeholders.”
Robert Feurle is a semiconductor industry veteran, bringing more than 20 years of experience in driving operational excellence and financial strength. Prior to his appointment as Wolfspeed’s CEO, Feurle’s recent experience includes serving as Executive Vice President of the Opto Semiconductor business unit at ams-OSRAM AG and Vice President and General Manager of Integrated Solutions and Discretes at Infineon Technologies AG. He also held various leadership and operational roles at Micron Technology, Inc., Qimonda AG and Siemens AG.
Feurle holds a degree in Electrical Engineering from the University of Applied Sciences in Konstanz, Germany.
Original – Wolfspeed
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Power Integrations announced that Gregg Lowe will join the company’s board of directors on February 15, 2025.
From 2017 until 2024 Mr. Lowe was CEO of Wolfspeed, Inc., where he led the company’s transition to a pure-play manufacturer of silicon-carbide solutions for high-power applications. Previously, he was CEO of Freescale Semiconductor from 2012 until its 2015 merger with NXP Semiconductors. Earlier, he had a 27-year career at Texas Instruments, serving in a succession of leadership roles across field sales, automotive sales, marketing, and integrated circuits, culminating in the role of senior vice president and manager of the company’s analog business, where he helped direct the acquisition of National Semiconductor.
Mr. Lowe currently serves on the boards of Silicon Labs and North Carolina A&T University, and is chairman of the board of the Rock and Roll Hall of Fame Museum. He holds a Bachelor of Science degree in electrical engineering from the Rose-Hulman Institute of Technology and has completed the Stanford Executive Program at Stanford University.
Commented Balu Balakrishnan, chairman and CEO of Power Integrations: “We are delighted to welcome Gregg Lowe to our board. Gregg is an ideal fit thanks to his decades of experience in analog and power semiconductors, particularly his expansive knowledge of the sales and distribution landscape and deep customer relationships in key end markets including automotive and industrial.”
Original – Power Integrations
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Wolfspeed, Inc. reported its fiscal second-quarter 2025 results, highlighting strategic initiatives aimed at enhancing profitability and strengthening its financial position. The company achieved revenue of $181 million, a decrease from $208 million in the same quarter the previous year. Notably, the Mohawk Valley Fab contributed $52 million to this quarter’s revenue, a significant increase from $12 million in the prior year.
The GAAP gross margin was reported at negative 21%, down from 13% in the previous year, while the non-GAAP gross margin stood at 2%, compared to 16% previously. These figures reflect underutilization costs associated with the commencement of production at the Mohawk Valley Fab.
Executive Chair Thomas Werner emphasized the company’s focus on accelerating the path to operating free cash flow generation, strengthening the balance sheet, and securing cost-effective capital to support growth. He noted the completion of a $200 million at-the-market equity offering, bringing Wolfspeed closer to finalizing CHIPS funding.
Looking ahead, Wolfspeed projects third-quarter fiscal 2025 revenue between $170 million and $200 million. The company anticipates a GAAP net loss ranging from $270 million to $295 million, or $1.73 to $1.89 per diluted share. On a non-GAAP basis, the expected net loss is between $119 million and $138 million, or $0.76 to $0.88 per diluted share. These projections account for the issuance of approximately 27.8 million shares under the ATM program.
In the first quarter of fiscal 2025, Wolfspeed initiated a facility closure and consolidation plan to optimize its cost structure and expedite the transition from 150mm to 200mm silicon carbide devices. The company incurred $188.1 million in restructuring-related costs during the second quarter, with $31.4 million recognized in cost of revenue and $156.7 million as operating expenses. For the upcoming quarter, Wolfspeed expects additional restructuring costs of $72 million, divided between cost of revenue and operating expenses.
Wolfspeed continues to invest in its 200mm greenfield footprint, aiming to produce high-quality materials and devices to meet the growing demand for silicon carbide in high-voltage applications. The company remains committed to leveraging its assets and capabilities to capitalize on long-term opportunities in the industry.
Original – Wolfspeed
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Wolfspeed, Inc. introduced its new Gen 4 technology platform, which enables design rooted in durability and efficiency, all while reducing system cost and development time. Engineered to simplify switching behaviors and design challenges commonly experienced in high-power designs, Gen 4 charts a long-term roadmap across Wolfspeed’s product categories, including power modules, discrete components, and bare die products. These products are currently available in the 750V, 1200V and 2300V classes.
“We understand that each application’s design comes with a unique set of requirements,” said Jay Cameron, senior vice president of Wolfspeed power products. “From its inception, our goal for Gen 4 has been to improve overall system efficiency in real-world operating environments, with a focus on delivering maximum performance at the system level. Gen 4 enables design engineers to create more efficient, longer-lasting systems that perform well in tough operating environments at a better overall system cost.”
Silicon carbide technology is one of the fastest growing components of both the power device market and the greater semiconductor industry. A superior alternative to silicon, silicon carbide is ideal for high power applications – such as EV powertrains, e-mobility, renewable energy systems, battery energy storage systems, and AI data centers – that unlocks improved performance and lower system costs.
As the U.S. and the globe pursue more efficient and environmentally friendly solutions to meet the world’s ever-increasing need for high-voltage energy sources, it is crucial that the U.S. continue to make strategic investments to cement its technological dominance, while continuing to spur American innovation in critical technologies.
Wolfspeed is the only silicon carbide producer with both silicon carbide material and silicon carbide device fabrication facilities based in the United States, a factor that is becoming increasingly important under the new U.S. Administration’s increased focus on national security and investment in U.S. semiconductor production.
“Innovative technology unlocks business opportunity,” said Devin Dilley, president and chief product officer, EPC Power, a U.S.-based utility-scale inverter manufacturer. “Wolfspeed’s new Gen 4 SiC technology is enabling EPC Power to make a paradigm shift in how energy is created and stored globally.”
“As the world-leader in silicon carbide technology, based on American IP and delivered through U.S.-based fabrication facilities, Wolfspeed has been relentless in our drive to continue to innovate and bring our silicon carbide solutions to more and more industries with increasingly challenging use cases,” said Wolfspeed Executive Chairman, Tom Werner. “Our Gen 4 platform will be delivered via our highly efficient 200mm wafers, which will enable us to deliver products on a scale and level of yield not seen in this industry before.”
Wolfspeed’s Gen 4 platform was designed to comprehensively improve system efficiency and prolong application life, even in harshest of environments, while helping to reduce system cost and development time. The technology will deliver significant performance enhancements for designers of high-power automotive, industrial, and renewable energy systems, with key benefits including:
- Holistic System Efficiency: Delivering up to a 21% reduction in on-resistance at operating temperatures with up to 15% lower switching losses.
- Durability: Ensuring reliable performance, including a short-circuit withstand time of up to 2.3 µS to provide additional safety margin.
- Lower System Cost: Streamlining design processes to reduce system costs and development time.
Learn more in Wolfspeed’s white paper “Gen 4 Silicon Carbide Technology: Redefining Performance and Durability in High-Power Applications”.
Wolfspeed’s Gen 4 products are available in 750V, 1200V and 2300V nodes, with options for power modules, discrete components, and bare die products. New product introductions, including additional footprints and RDSON ranges, will be available throughout 2025 and early 2026.
Original – Wolfspeed
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Wolfspeed, Inc. announced that it has completed the offering of shares of its common stock under its previously announced “at the market” offering program pursuant to a shelf registration statement filed with the U.S. Securities and Exchange Commission and a prospectus supplement, dated December 9, 2024.
Through the program, the Company sold 27,793,535 shares of its common stock for gross proceeds of approximately $200 million. Wolfspeed intends to use the net proceeds from the ATM Program to improve its capital structure, reduce leverage, and address outstanding maturities on its balance sheet.
Tom Werner, Executive Chairman of Wolfspeed, commented, “When I became Executive Chairman of Wolfspeed, completing our CHIPS Act funding process was a top priority of mine and today’s news marks an important milestone in that regard. With the ATM Program completed, we are now one step closer to finalizing our PMT and receiving our first funding disbursements from the CHIPS office and our other lenders. We look forward to continued collaboration with the CHIPS office to make sure the transition from silicon to silicon carbide is driven by American innovation, with American IP at the forefront.”
Original – Wolfspeed
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Wolfspeed announced that Melissa Garrett has been appointed Senior Vice President and General Counsel, effective December 9, 2024. Garrett succeeds Brad Kohn, who has resigned from the company for another professional opportunity.
Garrett brings extensive legal expertise and has served as a senior member of Wolfspeed’s legal team leading global employment and non-patent litigation matters since 2015. She brings a comprehensive legal background in contracts and negotiations, litigation management, corporate governance, employment law, policy and mergers and acquisitions.
“Melissa’s contributions to Wolfspeed over the last nine years have been highly valuable, and we are pleased to welcome her to the role of General Counsel,” said Tom Werner, Executive Chairman. “With her proven track record in legal, risk and compliance, coupled with her deep institutional knowledge of Wolfspeed, she is uniquely qualified to step into this role. We deeply appreciate Brad’s tireless advocacy for Wolfspeed over the years and thank him for his dedication and many contributions to the company. He and Melissa have been working closely on all key projects, so we expect a smooth transition and we wish him all the best in his future endeavors.”
Prior to joining Wolfspeed, Garrett served as Deputy General Counsel and Assistant Corporate Secretary at Kangaroo Express. She previously served as an attorney at Jackson Lewis and Paul, Hastings, Janofsky & Walker LLP, and began her career as an attorney at Fisher & Philips. She holds a Juris Doctor from Indiana University and a Bachelor of Arts from University of Wisconsin-Madison.
Original – Wolfspeed
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Wolfspeed announced that its Board of Directors (the “Board”) has determined and agreed with Gregg Lowe that he will depart this month from his roles as Wolfspeed’s President and Chief Executive Officer and as a member of the Board. The Board is conducting a search to identify a permanent CEO with the support of a leading global executive search firm.
The Board has appointed Thomas Werner, Chairman of the Board, as Executive Chairman while the Board works to identify Wolfspeed’s next CEO. Mr. Werner will oversee the continued execution of Wolfspeed’s strategy in close alignment with Wolfspeed’s senior leadership team, the Board and the Board’s operations and finance committees. Following Mr. Werner’s appointment as Executive Chairman, Board member Stacy Smith was appointed as Lead Independent Director.
“On behalf of the full Board, I would like to thank Gregg for his service and dedication to Wolfspeed,” Mr. Werner said. “Since joining the Company as CEO in 2017, Gregg has spearheaded our transition into a leading, pure-play silicon carbide company well-positioned to capture the long-term opportunities ahead. The Board has always been focused on driving long-term value, and at this inflection point in Wolfspeed’s journey, the Board agreed that this is the right time for a leadership transition.”
Mr. Werner added, “I have started in the role of Executive Chairman to keep Wolfspeed focused on completing key priorities while the Board conducts a search for our next CEO. I look forward to working closely with our highly engaged Board and senior leadership team to oversee day-to-day operations and ensure we continue to provide our customers with high-quality products. As we look ahead, we are firmly committed to our key strategic initiatives, which includes executing against the milestones outlined in our recent CHIPS PMT agreement, completing our restructuring initiatives to lower our break-even point and accelerate our path towards profitability, and delivering sales growth on a consistent basis. Wolfspeed is materially undervalued relative to its strategic value and I will focus on driving the Company’s priorities and working with the Finance Committee of the Board to explore options to unlock value.”
Mr. Lowe said, “I am honored to have had the opportunity to lead Wolfspeed and work alongside such talented and dedicated colleagues. Over the past seven years, we have transformed Wolfspeed into the only pure-play and vertically integrated silicon carbide operator in the country to capitalize on the structural and long-term demand for next generation semiconductor technology. While there is work still to be done, I have every confidence that Wolfspeed will execute on its strategic priorities and extend its silicon carbide leadership in the years to come.”
About Thomas Werner
Mr. Werner has been a member of the Board of Directors since March 2006, and has served as Chairman of the Board of the Company since October 2023. He has served as the Executive Chairman of SunPower Corporation (Nasdaq: SPWR), a publicly traded marketer of high-efficiency solar cells and solar panels, since February 2024, and served as Principal Executive Officer of SunPower from February 2024 until August 2024. Mr. Werner previously served as Sunpower’s Chairman of the Board of Directors from June 2010 to November 2021 and as its Chief Executive Officer from June 2003 to April 2021. Prior to SunPower, he served as Chief Executive Officer of Silicon Light Machines Corporation, an optical solutions subsidiary of Cypress Semiconductor Corporation, from July 2001 to June 2003. Earlier, Mr. Werner was Vice President and General Manager of the Business Connectivity Group of 3Com Corporation, a network solutions company.
Original – Wolfspeed
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Wolfspeed, Inc. announced its results for the first quarter of fiscal 2025.
Quarterly Financial Highlights (Continuing operations only. All comparisons are to the first quarter of fiscal 2024.)
- Consolidated revenue of approximately $195 million, as compared to approximately $197 million
- Mohawk Valley Fab contributed approximately $49 million in revenue
- Power device design-ins of $1.5 billion
- Power device design-wins of $1.3 billion
- GAAP gross margin of approximately (19)%, compared to approximately 13%
- GAAP gross margin includes the impacts of underutilization costs primarily in connection with the start of production at the Mohawk Valley Fab. Underutilization was $26.4 million as compared to $34.4 million.
- Non-GAAP gross margin of 3%, compared to 16%
- Ended Q1 with ~$1.7 billion in cash and investments; does not include initial draw down of $250 million from lender group
“This quarter we took action to solidify the capital structure, simplifying our business to accelerate structural profitability and support the build out of our state-of-the-art silicon carbide facilities. We will have a 200mm silicon carbide footprint at Mohawk Valley and North Carolina materials factories that we target to generate approximately $3 billion in revenue annually,” said Wolfspeed CEO, Gregg Lowe. “Last month, we reached a significant milestone by signing a non-binding preliminary memorandum of terms (PMT) for up to $750 million in proposed direct funding under the CHIPS and Science Act and an additional $750 million from our lending group, demonstrating substantial progress towards our funding goals. With this announcement, we now have access to up to $2.5 billion of incremental funding to support our U.S. capacity expansion plans.”
Lowe continued, “To drive operational improvements, we are taking action to enhance efficiency, align our business with current market conditions and become the first silicon carbide company to transition to pure-play 200-millimeter. The transition to a fully 200-millimeter platform allows us to take further initiatives to streamline our cost structure, including closing our manual Durham 150-millimeter Fab, other manufacturing footprint rationalization, and reducing our workforce. Combined, we expect these initiatives will yield approximately $200 million in annual cash savings. In parallel, we remain focused on optimizing our capital structure, further reducing our fiscal 2025 CapEx guidance by $100 million to align the pace of our spend with the broader shift in EV market demand.”
“We delivered 2.5 times year-over-year growth in our automotive business in the first quarter, and we expect our EV revenue to continue to grow throughout calendar 2025, as the total number of car models using a Wolfspeed silicon carbide solution in the power train increased by 4x from 2023 to 2024 and is expected to grow by another approximately 75% year over year in 2025. We also remain confident in the long-term fundamentals of our industrial and energy business. Importantly, we believe the secular trends and long-term growth drivers for our core end markets remain intact, and we expect the actions we are taking today will allow us to become a more efficient and agile organization positioned to capture the long-term growth opportunities ahead,” concluded Lowe.
For its second quarter of fiscal 2025, Wolfspeed targets revenue from continuing operations in a range of $160 million to $200 million. GAAP net loss is targeted at $401 million to $362 million, or $3.14 to $2.84 per diluted share. Non-GAAP net loss is targeted to be in a range of $145 million to $114 million, or $1.14 to $0.89 per diluted share.
Targeted non-GAAP net loss excludes $256 million to $248 million of estimated expenses, net of tax, primarily related to stock-based compensation expense, amortization of discount and debt issuance costs, net of capitalized interest, project, transformation and transaction costs and restructuring and other facility closure costs. The GAAP and non-GAAP targets do not include any estimated change in the fair value of the shares of common stock of MACOM Technology Solutions Holdings, Inc. (MACOM) that we acquired in connection with the sale to MACOM of our RF product line (RF Business Divestiture).
During the first quarter of fiscal 2025, Wolfspeed initiated a facility closure and consolidation plan to optimize its cost structure and accelerate its transition from 150mm to 200mm silicon carbide devices. The costs incurred as a result of this restructuring plan include severance and employee benefit costs, voluntary termination benefits and other facility closure-related costs.
Wolfspeed incurred $87.1 million of restructuring-related costs in the first quarter of fiscal 2025, of which $34.3 million were recognized in cost of revenue, net and $52.8 million were expensed as operating expense in the statement of operations. For the second quarter of fiscal 2025, the Company expects to incur $174 million of restructuring-related costs, of which $34 million will be recognized in cost of revenue, net and the remaining $140 million will be recognized as operating expense.
Original – Wolfspeed
- Consolidated revenue of approximately $195 million, as compared to approximately $197 million
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Wolfspeed, Inc. announced that Thomas Seifert and Woody Young have been nominated to Wolfspeed’s Board of Directors (the “Board”). Their nominations will be considered by shareholders at the 2024 Annual Meeting of Shareholders (the “2024 Annual Meeting”), scheduled for December 5, 2024.
Mr. Seifert has served as the Chief Financial Officer of Cloudflare, Inc., a leading internet security company, since June 2017. Prior to joining Cloudflare, Mr. Seifert held executive leadership positions at a number of technology and semiconductor companies, including serving as Chief Financial Officer of Symantec Corporation, Brightstar Corp., and Advanced Micro Devices Inc. Mr. Seifert currently serves as a member of the Board of Directors of First Derivatives plc, an ultra-high-performance analytics software company.
Mr. Young most recently served as the President and a member of the Board of Directors of Solidigm, a flash memory semiconductor company, from October 2022 until August 2023. Mr. Young has over 30 years of experience as an investment banker and is the former Chairman of Mergers and Acquisitions at Perella Weinberg Partners LP. He previously served as the Co-Head of Global Telecommunications, Media, and Technology at Lazard and in similar roles at Merrill Lynch and Lehman Brothers. Mr. Young currently serves as a member of the Board of Directors of Frontier Communications Parent, Inc. (Nasdaq: FYBR), a fiber internet provider.“We are delighted to nominate Thomas Seifert and Woody Young for election to the Wolfspeed Board of Directors,” said Thomas Werner, Chair of the Wolfspeed Board. Mr. Werner continued, “With yesterday’s CHIPS Act capital structure update, I believe the Company successfully took a key step towards funding the execution of its business plan. We believe Thomas and Woody will be valuable additions to the Board as we focus on executing that plan, driving operational execution improvement, and continuing our previously disclosed efforts to explore ways to enhance shareholder value and unlock Wolfspeed’s strategic value.”
Clyde R. Hosein and John B. Replogle, who have served on the Board since 2005 and 2014, respectively, are not standing for re-election and will retire from the Board following the expiration of their terms at the 2024 Annual Meeting. “On behalf of the Board, I want to thank Clyde and John for their dedication and exemplary service to Wolfspeed over many years,” said Mr. Werner.
Original – Wolfspeed
