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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
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The U.S. Department of Commerce and Wolfspeed announced they have signed a non-binding preliminary memorandum of terms (PMT) for up to $750 million in proposed direct funding under the CHIPS and Science Act. In addition, a consortium of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company and Capital Group have agreed to provide Wolfspeed an additional $750 million of new financing.
Together these investments support Wolfspeed’s long-term growth plans and bolster domestic production of silicon carbide to power clean energy systems underpinning electric vehicles (EVs), artificial intelligence (AI) data centers, battery storage and more. In addition, Wolfspeed expects to receive $1 billion of cash tax refunds from the advanced manufacturing tax credit under the CHIPS and Science Act (section 48D), giving the company, in total, access to up to $2.5 billion of expected capital to support the expansion of silicon carbide manufacturing in the United States.
Wolfspeed is the world’s largest producer of silicon carbide technology, pioneering the technology more than 35 years ago on the campus of North Carolina State University. Since that time, Wolfspeed has become the global leader in silicon carbide technology, one of the fastest growing components of the broader semiconductor industry.
- Silicon carbide is a superior alternative to silicon for high power applications – such as EV powertrains, e-mobility, renewable energy systems, battery energy storage systems, and AI and cryptocurrency data centers – that unlocks improved performance and lower system costs.
- Notably, the importance of bolstering the domestic production of silicon carbide has been recognized across multiple federal agencies; the Department of Energy denoted it as one of 17 “critical materials” with a high risk of supply disruption that are integral to clean energy technologies, while the Department of Commerce recognizes silicon carbide semiconductors as important to national security.
- As the U.S. and the world pursue more efficient and environmentally friendly solutions to meet the world’s ever-increasing need for high-voltage energy products, it is crucial that the U.S. continue to make strategic investments to cement its technological leadership position, while continuing to spur American innovation in critical technologies.
Wolfspeed CEO, Gregg Lowe, said, “To reach this milestone under the U.S. CHIPS and Science Act is an incredible achievement in Wolfspeed’s long-term growth strategy, and we believe today’s announcement is a testament to the market-leading quality of Wolfspeed products and significance of Wolfspeed to broader U.S. economic and national security interests. This support galvanizes our ability to expand domestic manufacturing, accelerate innovation in next-generation semiconductor technology, and meet the increasing global demand for silicon carbide. As a key player in the semiconductor industry, this proposed investment will enable us to solidify our leadership position with a first-of-its-kind 200mm silicon carbide manufacturing footprint in upstate New York and central North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain. It’s not just about growth for Wolfspeed—it’s about driving technological advancement that powers the future.
“Silicon carbide is already enabling superior energy efficiency across mission-critical industries of the future like electric vehicles, e-mobility, solar and wind energy, industrial power applications, and AI data centers. While EVs have been the driver of silicon carbide adoption thus far, we believe the use cases for our technology are expansive and will only continue to grow as more and more industries find themselves needing to solve for the same power loss, system size, and system cost challenges as automakers,” concluded Lowe.
“Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies,” said U.S. Secretary of Commerce Gina Raimondo. “Because of the Biden-Harris Administration’s CHIPS and Science Act, the United States is building and fortifying our semiconductor manufacturing capabilities to serve our economic and national security interests while creating jobs and economic opportunities for communities across the country.”
“Wolfspeed is leading the pack in bringing semiconductor manufacturing back to America. This major multibillion dollar investment powered by my CHIPS & Science Law will accelerate the ongoing expansion in the Mohawk Valley, helping speed up hiring of hundreds of new good-paying jobs that Wolfspeed is creating in the Mohawk Valley and providing long term work for the Marcy fab to succeed well into the future, further establishing Upstate NY as a global hub for chip manufacturing,” said Senator Chuck Schumer. “From electric vehicles to artificial intelligence, this critical technology relies on the silicon carbide chips that Wolfspeed will manufacture and perfect in the Mohawk Valley. Today’s massive investment will make America’s economy and our national security stronger as Wolfspeed helps us write the next chapter of America’s resurgence as the leader in the semiconductor industry, with the Mohawk Valley as the beating heart.”
“Wolfspeed is a homegrown semiconductor innovator and manufacturer creating great jobs in North Carolina, and it’s important they received this major grant under the CHIPS and Science Act,” said North Carolina Governor Roy Cooper. “Thanks to this landmark legislation from the Biden-Harris Administration and our great workforce, we will continue to see good paying jobs coming to North Carolina.”
“This $750 million federal investment is a testament to Wolfspeed’s unique leadership in silicon carbide semiconductor manufacturing, and I applaud Wolfspeed’s continued commitment to North Carolina,” said Senator Thom Tillis. “I was proud to vote for the CHIPS and Science Act to provide the funding for this investment in North Carolina and to support our economic and national security.”
“North Carolina continues to be a leader in cutting-edge manufacturing that is vital to our country’s national and economic security,” said Senator Ted Budd. “This new Wolfspeed site in Siler City will bring good-paying jobs to the area and is an important first step in making sure America has secure supply chains for critical semi-conductors.”
“We are pleased to expand our investment in Wolfspeed by providing additional capital in support of the company’s build out of its leading silicon carbide capabilities,” said Apollo Partner Joseph Jackson. “We believe Wolfspeed is at the forefront of a critical transformation in sustainable transportation and ensuring that the company has durable capital access to complete its expansion plans will help solidify its leadership in this space. Along with our lending consortium, which includes multiple funds that also own substantial equity stakes in the company, we believe this strategic investment will drive significant long-term value while advancing key tenets of the CHIPS and Science Act.”
These proposed funds, which are expected to be received upon milestone achievements in the coming years, would enable Wolfspeed to complete its multi-billion-dollar greenfield U.S. capacity expansion plan, which consists of the largest and most advanced 200mm silicon carbide footprint in the world. In addition to the proposed direct funding, Wolfspeed intends to benefit from the U.S. Treasury Department Investment Tax Credit of up to 25% of the qualified capital expenditures primarily related to its construction and installation of equipment at The John Palmour Manufacturing Center for Silicon Carbide in Siler City, NC and completion of the Mohawk Valley Fab M-Line West Expansion in Utica, NY.
This multi-billion-dollar investment will bolster Wolfspeed’s balance sheet and will help to fuel significant growth through cash generation and accelerate its long-term profitability goals.
Summary of the PMT
The PMT outlines key terms for a CHIPS incentive award, including the proposed amount and form of the award, and provides that the disbursement of funds will be conditioned upon the achievement of certain operational and construction milestones and other requirements.
The PMT includes an obligation for Wolfspeed to raise an aggregate of $750 million in debt financing over three tranches through the issuance of senior notes under an amended and restated indenture. Wolfspeed and its lenders, led by Apollo funds, have reached an agreement for this additional financing, including $250 million to be available within 10 business days, and have agreed to certain intercreditor terms with the CHIPS Program Office as described in the PMT.
Together, the PMT and the agreement with lenders also requires:
- Wolfspeed to undertake further actions with respect to its capital structure, including (a) restructuring or refinancing its outstanding 2026, 2028 and 2029 convertible notes at specified intervals prior to their respective maturity dates, (b) deferring a total of $120 million in cash interest payments due prior to June 30, 2025 under an unsecured customer refundable deposit agreement, and (c) raising up to $300 million of additional capital from non-debt sources over the next 12 months.
- In addition, Wolfspeed has agreed with its lenders to certain revisions in the terms of the senior notes, including revisions to the interest rate applicable to the senior notes, as described in the Form 8-K filed today with Securities and Exchange Commission (SEC).
The PMT provides that the award is subject to due diligence and the negotiation and signing of a definitive direct funding agreement with the Department of Commerce and the negotiation and signing of an intercreditor agreement between the Department of Commerce and the Company’s lenders, which may contain different or additional conditions not contained in the PMT. Additional terms of the PMT were not disclosed.
Original – Wolfspeed
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Wolfspeed, Inc. unveiled a silicon carbide module designed to transform the renewable energy, energy storage, and high-capacity fast-charging sectors through improved efficiency, durability, reliability, and scalability. The 2300V baseplate-less silicon carbide power modules for 1500V DC Bus applications were developed and launched utilizing Wolfspeed’s state-of-the-art 200mm silicon carbide wafers.
Wolfspeed also announced that it is partnering with EPC Power, a premier North American utility-scale inverter manufacturer. EPC Power will be employing the Wolfspeed® modules in utility-grade solar and energy storage systems, which offer a scalable high-power conversion system and high-performance controls and system redundancy.
“The solar and energy storage market remains among the fastest-growing segments of the renewable energy industry. As the pioneers of silicon carbide, we are driven to create solutions that will open the door to a new era of modern energy,” said Jay Cameron, Wolfspeed Senior Vice President and General Manager, Power. “Energy efficiency, reliability, and scalability are top of mind for our customers, such as EPC Power, who recognize the substantial advantages Wolfspeed’s silicon carbide brings to the table.”
“Silicon carbide devices open the door to a step-change in inverter performance and reliability. With our commitment to extreme reliability, performance, and security in our new ‘M’ inverter while also forging a deep commercial relationship with key suppliers, Wolfspeed was the obvious choice,” said Devin Dilley, President and Chief Product Officer, EPC Power.
With mounting global investment in renewable energy, the solar energy market is estimated to reach a $300 billion market capitalization by 2032. According to the International Energy Agency (IEA), 2024-25 will see the highest energy demand growth rate since 2007, reinforcing the need for efficient and reliable clean power. Wolfspeed’s silicon carbide solution helps bridge this crucial gap, supporting the next era of modern energy technologies while reinforcing U.S. clean energy manufacturing leadership.
Cameron continued, “This platform further validates our investments in 200mm wafer technology and production as the potential of silicon carbide continues to be recognized by industry leaders across all mission-critical applications.”
Original – Wolfspeed
