Wolfspeed Tag Archive

  • Wolfspeed Announced Q3 FY2024 Financial Results

    Wolfspeed Announced Q3 FY2024 Financial Results

    2 Min Read

    Wolfspeed, Inc. announced its results for the third quarter of fiscal 2024.

    Quarterly Financial Highlights (Continuing operations only. All comparisons are to the third quarter of fiscal 2023):

    • Consolidated revenue of approximately $201 million, compared to approximately $193 million
      ◦ Mohawk Valley Fab contributed approximately $28 million in revenue, over a 2x increase from the prior quarter
      ◦ Materials revenue of approximately $99 million – second highest quarter on record
    • Power device design-ins of $2.8 billion
    • Quarterly design-wins of $0.9 billion – 70% related to EV applications
    • GAAP gross margin of 11%, compared to 31%
    • Non-GAAP gross margin of 15%, compared to 34%
      ◦ GAAP and non-GAAP gross margins for the third quarter of fiscal 2024 include the impact of $30 million of underutilization costs, representing approximately 1,500 basis points of gross margin. See “Start-up and Underutilization Costs” below for additional information.

    “We are pleased with the significant operational milestones achieved in the quarter for Wolfspeed as we continue to be the world’s first fully, vertically integrated 200-millimeter silicon carbide player at scale,” said Wolfspeed CEO, Gregg Lowe.

    “We are making progress on our Mohawk Valley ramp, more than doubling revenue sequentially in the quarter and reaching more than 16% wafer start utilization in April, giving us confidence in our ability to achieve our 20% utilization target in June 2024. Construction continues at the JP, our 200mm materials factory in North Carolina. During the quarter, we started installing furnaces and connected the facility to the power grid, and we recently hosted our topping out ceremony. As we’ve said before, Mohawk Valley will be the flywheel of growth for Wolfspeed, and the JP will be instrumental in supplying it with high-quality materials. We are encouraged by the operational progress these facilities have made and how it will support our long-term growth trajectory.”

    Lowe continued, “While there have been headlines around general demand weakness in EVs, we still have more demand than we can supply for the foreseeable future. Our second highest quarter of design-ins to date and more than $5 billion of designwins so far this fiscal year, tell a compelling story. While the industrial and energy end markets pose short-term headwinds to our results, we firmly believe in the strength of our long-term prospects as the electrification of all things continues across a broad set of applications.”

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  • Wolfspeed Issued the Statement in Response to the Letter from JANA Partners

    Wolfspeed Issued the Statement in Response to the Letter from JANA Partners

    1 Min Read

    Wolfspeed, Inc. issued the following statement in response to the letter from JANA Partners (“JANA”) to Wolfspeed’s Board of Directors:

    Wolfspeed’s Board of Directors and management team maintain an open dialogue with, and value constructive input from, our shareholders. The company continually evaluates options to enhance long-term value and is committed to acting in the best interests of all our shareholders. The Wolfspeed Board will carefully review JANA’s letter, and we look forward to engaging with them in the near future.

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  • Wolfspeed Celebrates Topping out of Construction at John Palmour Manufacturing Center for Silicon Carbide

    Wolfspeed Celebrates Topping out of Construction at John Palmour Manufacturing Center for Silicon Carbide

    3 Min Read

    Wolfspeed, Inc. hosted Senator Thom Tillis (R-NC) and other local officials, community partners, and employees at a ceremony to celebrate the topping out of construction at the $5 billion John Palmour Manufacturing Center for Silicon Carbide. Located in Chatham County, North Carolina, the JP will produce 200mm silicon carbide wafers, significantly expanding Wolfspeed’s materials capacity, and meet the demand for next generation semiconductors critical to the energy transition and AI.

    “We are excited to mark this critical milestone alongside our hard-working team, loyal customers, community partners, and ardent supporters like Senator Thom Tillis,” said Wolfspeed President and CEO, Gregg Lowe.

    “This facility is a testament to Wolfspeed’s commitment to our local community and domestic workforce, furthering our position as the global leader in silicon carbide production. The JP will help maintain America’s lead in energy innovation, and unlock significant benefits for our local community by growing the state’s economy by more than $17.5 billion over the next two decades and creating 1,800 good-paying jobs by 2030.”

    “Wolfspeed’s $5 billion investment in Chatham County is another example of why North Carolina is the best state in the country to do business,” said Senator Tillis. “I was proud to vote in favor of the CHIPS and Science Act, which provides critical support for domestic semiconductor manufacturing, and I applaud Wolfspeed’s commitment to developing technology here in North Carolina that supports our national security and economic interests.”

    The JP represents a total investment of $5 billion, complemented by public and private support, to help accelerate the transition from silicon to silicon carbide and ramp up supply of this material recently deemed as critical to the energy transition by the U.S. Department of Energy. By the end of 2024, phase one of construction is expected to be completed on the 445-acre site.

    The ramp of the JP will support recently signed customer agreements with Renesas, Infineon, and additional companies, while driving meaningful progress towards Wolfspeed’s long-term growth strategy. The JP will primarily produce 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, translating to more efficient wafers and ultimately, lower costs. The JP underpins Wolfspeed’s vision of accelerating the adoption of silicon carbide semiconductors across a wide array of end-markets and unlocking a new era of energy efficiency.

    Wolfspeed currently produces more than 60% of the world’s silicon carbide materials at its Durham, N.C. headquarters, and is engaged in a $6.5 billion capacity expansion effort to dramatically increase production.

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  • Wolfspeed Expands Partnership with FIRST®Robotics Competition

    Wolfspeed Expands Partnership with FIRST®Robotics Competition

    2 Min Read

    Wolfspeed, Inc. announced an expanded partnership with FIRST® Robotics Competition to take their shared commitment to science, technology, engineering, and math (STEM) educationinternational. Together, they will sponsor hands-on STEM programs that combine the excitement of athletics with the rigors of science and technology for high school students around the world. This new global sponsorship builds on Wolfspeed’s existing partnership with FIRST to sponsor competitions in the United States.

    “At Wolfspeed, inspiring young minds in STEM fields is a core part of our values,” said Wolfspeed Chief Human Resources Officer, Margaret Chadwick. “We are thrilled to expand our partnership with FIRST Robotics Competition on a global scale. The hands-on learning and enthusiastic competition will ignite passion and innovation in students worldwide, while preparing them to become the next generation of inventors and leaders. Together with FIRST, we are committed to making a lasting impact and fostering diversity in our industry through STEM engagement across the globe.”

    Wolfspeed’s 2023-2024 season partnership includes a team grant to “Neon Krakens,” the only FIRST Robotics Competition Team in Chatham County, North Carolina. The county is the site of Wolfspeed’s new silicon carbide manufacturing facility, currently under construction and set to be the world’s largest factory of its kind.

    FIRST is dedicated to inspiring young minds in STEM fields and equipping them with the skills needed to succeed in today’s ever-evolving world,” said Collin Fultz, Senior Director, FIRST Robotics Competition. “We are excited to expand our collaboration with Wolfspeed, enhancing the excitement of FIRST Robotics Competition for students worldwide. This partnership will not only help us further ignite a passion for STEM, but also foster diversity in our industry, ultimately helping us create a more innovative and inclusive future.”

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  • Wolfspeed Shared Results for the Second Quarter of Fiscal 2024

    Wolfspeed Shared Results for the Second Quarter of Fiscal 2024

    3 Min Read

    Wolfspeed, Inc. announced its results for the second quarter of fiscal 2024.

    Quarterly Financial Highlights (Continuing operations only. All comparisons are to the second quarter of fiscal 2023):

    • Consolidated revenue of $208.4 million, compared to $173.8 million
      ◦ Mohawk Valley Fab contributed $12 million in revenue, a 3x increase from the prior quarter
    • Power device design-ins of $2.1 billion
    • Quarterly record design-wins of $2.9 billion – over 75% related to automotive applications
    • GAAP gross margin of 13.3%, compared to 32.6%
    • Non-GAAP gross margin of 16.4%, compared to 35.8%
      ◦ GAAP and non-GAAP gross margins for the second quarter of fiscal 2024 include the impact of $35.6 million of underutilization costs, representing approximately 1,700 basis points of gross margin
    • Completed sale of our RF Business to MACOM Technology Solutions Holdings, Inc. (MACOM) for $75 million in cash and 711,528 shares of MACOM common stock (the RF Business Divestiture)

    “We’re proud of our results this quarter, which reflect robust execution of our strategy and fortify our vision for the future of Wolfspeed and silicon carbide,” said Wolfspeed CEO, Gregg Lowe. “We have made considerable progress at our Mohawk Valley facility, tripling revenue sequentially. Our successful scale-up of 200mm wafer production and continued qualification of high-quality EV products on 200mm substrates are critical steps in meeting the continued customer demand. This is demonstrated by a record $2.9 billion of design-wins, predominantly in the EV sector across multiple OEMs.”

    Lowe continued, “Our steadfast commitment to our long-term goals is bolstered by the conversion of our design-ins into significant design-wins. This solidifies our confidence in the electrification trend, which increasingly depends on the widespread adoption of silicon carbide technology. We are pioneers in this transformative era, steering towards a more electrified and efficient future.”

    Business Outlook:

    For its third quarter of fiscal 2024, Wolfspeed targets revenue from continuing operations in a range of $185 million to $215 million. GAAP net loss from continuing operations is targeted at $134 million to $155 million, or $1.07 to $1.23 per diluted share. Non-GAAP net loss from continuing operations is targeted to be in a range of $71 million to $87 million, or $0.57 to $0.69 per diluted share.

    Targeted non GAAP net loss from continuing operations excludes $63 million to $68 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 loss on Wafer Supply Agreement. The GAAP and non-GAAP targets from continuing operations do not include any estimated change in the fair value of the shares of MACOM common stock that we acquired in connection with the RF Business Divestiture.

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  • Wolfspeed to Expand Existing Long-Term SiC Wafer Supply Agreement with a Leading Global Semiconductor Company

    Wolfspeed to Expand Existing Long-Term SiC Wafer Supply Agreement with a Leading Global Semiconductor Company

    2 Min Read

    Wolfspeed, Inc. announced the expansion of an existing long-term silicon carbide wafer supply agreement with a leading global semiconductor company. The expanded agreement, which is now worth approximately $275 million in total, calls for Wolfspeed to supply the company with 150mm silicon carbide bare and epitaxial wafers, reinforcing both companies’ visions for an industry-wide transition from silicon to silicon carbide semiconductor power devices.

    “As the global leader in silicon carbide wafer production, Wolfspeed is uniquely positioned to be a critical supplier of high-quality and advanced silicon carbide materials at scale. We will continue to be an important partner to power device manufacturers who need the highest-quality silicon carbide wafers to service their customers,” said Dr. Cengiz Balkas, SVP and GM of Materials for Wolfspeed.

    “This agreement further strengthens our long-time partnership with a best-in-class power semiconductor manufacturer. Our collective efforts are helping to address the rapidly expanding opportunity for silicon carbide and better address the unfulfilled demand that exists in the marketplace today.”

    The adoption of silicon carbide-based power solutions is rapidly growing across multiple markets, including industrial and EVs. Silicon carbide solutions enable smaller, lighter and more cost-effective designs, converting energy more efficiently to unlock new applications in electrification. This supply agreement will enable silicon carbide applications in a broad range of industries, such as: renewable energy and storage, electric vehicles, charging infrastructure, industrial power supplies, traction and variable speed drives.

    Wolfspeed is the global leader in the manufacturing of silicon carbide wafers and epitaxial wafers. The company is currently expanding its manufacturing capacity in the United States and has plans to open a new, automated materials factory in Siler City, North Carolina later this year that will produce 200mm silicon carbide wafers. The new materials factory will increase Wolfspeed’s current materials production capacity by ten times.

    Original – Wolfspeed

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  • Infineon Expands and Extends the Existing SiC Wafer Supply Agreement with Wolfspeed

    Infineon Expands and Extends the Existing SiC Wafer Supply Agreement with Wolfspeed

    2 Min Read

    Infineon Technologies AG and Wolfspeed, Inc. announced the expansion and extension of their existing long-term 150mm silicon carbide wafer supply agreement, originally signed in February 2018. The extended partnership includes a multi-year capacity reservation agreement.

    It contributes to Infineon’s general supply chain stability, also with regard to the growing demand for silicon carbide semiconductor products for automotive, solar and EV applications and energy storage systems. 

    “As the demand for silicon carbide devices continues to increase, we are following a multi-source strategy to secure access to a high-quality, global and long-term supply base of 150mm and 200mm SiC wafers. Our prolonged partnership with Wolfspeed further strengthens Infineon’s supply chain resilience for the coming years,” said Jochen Hanebeck, CEO of Infineon Technologies. “We have been working with Wolfspeed for more than 20 years to bring the promise of silicon carbide to the automotive, industrial and energy markets, and to help customers leverage this energy-efficient technology to foster decarbonization.”

    The adoption of silicon carbide-based power solutions is rapidly growing across multiple markets. Silicon carbide solutions enable smaller, lighter and more cost-effective designs, converting energy more efficiently to unlock new clean energy applications. To better support these growing markets, Infineon is continuously diversifying its supplier base to secure access to high-quality silicon carbide substrates.

    “Wolfspeed is the world’s leader in silicon carbide production. We are the catalyst in the industry transition to silicon carbide, providing high-quality materials to key customers like Infineon, a leading supplier in both the automotive and industrial markets, while also scaling our capacity footprint,” said Wolfspeed president and CEO Gregg Lowe. “Industry estimates indicate demand for silicon carbide devices, as well as the supporting material, will grow substantially through 2030, representing a $20 billion annual opportunity. We are very pleased to continue our partnership with Infineon and to serve as a major supplier of silicon carbide wafers in the years ahead.”

    Original – Infineon Technologies

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  • MACOM Completes Acquisition of Wolfspeed's RF Business

    MACOM Completes Acquisition of Wolfspeed’s RF Business

    1 Min Read

    MACOM Technology Solutions Holdings, Inc. announced the completion of its acquisition of the radio frequency business of Wolfspeed, Inc. on December 2, 2023. The RF Business is highly complementary to MACOM’s portfolio and creates a compelling combined technology solution.

    “We are excited to welcome the RF Business team to MACOM,” said Stephen G. Daly, President, Chief Executive Officer and Chair. “Going forward, we are committed to supporting all product and foundry customers and building upon the RF Business’ established technology to strengthen our leadership position.”

    Original – MACOM Technology Solutions

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  • All Wolfspeed WolfPACK SiC Power Modules Now Available with TIM

    All Wolfspeed WolfPACK SiC Power Modules Now Available with TIM

    1 Min Read

    The Wolfspeed WolfPACK power module family is designed to give engineers choice and flexibility when working on power electronics applications greater than 10 kW.

    In addition to half-bridge and six-pack topologies, WolfPACK modules are now available in full-bridge configurations—all with the option for pre-applied Honeywell™ PTM6000 Series TIM.

    Selecting pre-applied TIM can reduce assembly cost and complexity, while improving reliability and performance. Compared to standard grease solutions, WolfPACK modules with pre-applied TIM can reduce the junction temperature by 40°C under the same conditions or increase current capability by 60% due to the reduction in thermal resistance.

    All WolfPACK modules are designed to provide clean, reliable power for energy conversion systems. By leveraging more than 35 years of vertically integrated industry experience, Wolfspeed ensures that these modules offer low losses in a package that lends itself to fast design implementation, scalability, long term design support, and lower assembly overhead.

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  • Wolfspeed Remains Steadfast in Long-Term Vision. Reports Financial Results for the First Quarter of FY 2024

    Wolfspeed Remains Steadfast in Long-Term Vision. Reports Financial Results for the First Quarter of FY 2024

    3 Min Read

    Wolfspeed, Inc. announced its results for the first quarter of fiscal 2024.

    Quarterly Financial Highlights (Continuing operations only. All comparisons are to the first quarter of fiscal 2023)

    • Consolidated revenue of $197.4 million, compared to $189.4 million
      ◦ Mohawk Valley Fab contributed $4.0 million in revenue
    • Device design-ins of $2.2 billion and quarterly record of over $1 billion in device design-wins
    • GAAP gross margin of 12.5%, compared to 35.7%
    • Non-GAAP gross margin of 15.6%, compared to 38.8%
      ◦ GAAP and non-GAAP gross margins for the first quarter of fiscal 2024 include the impact of $34.4 million of underutilization costs, representing approximately 1,740 basis points of gross margin.

    “We kicked off our fiscal year with a strong quarter in both execution and market share. Not only have we continued to win in the marketplace, as evidenced by our third highest quarter of design-ins and a record quarter of design-wins, we have clear focus on the ramp of our Mohawk Valley Fab,” said Wolfspeed CEO, Gregg Lowe. “At Mohawk Valley, we have an outstanding operations team in place, Building 10 on our Durham campus is producing enough 200mm wafers ahead of the needs of Mohawk Valley, and we already have enough qualified product to satisfy our 20 percent utilization goals.”

    Lowe continued, “We remain steadfast in our long-term vision for the future of this industry. The market opportunity for silicon carbide stands at $6 billion today, up from $400 million just five years ago. This further validates our strategy to invest now to capitalize on the immense opportunities at-hand, and the significant opportunity in the future.

    We have amassed significant materials expertise over the decades, which combined with the capacity of our new materials factory in Siler City, will increase our wafer production by 10x when fully operational, and creates significant competitive advantages over our peers and new entrants. We will be better positioned to support our customers’ needs going forward and cater to a whole host of new applications for silicon carbide technology.

    As the only pure-play silicon carbide company in the market today, we believe that we are best positioned to capitalize on a decades long tailwind that represents a $20 billion addressable market by 2030.”

    As previously announced, on August 22, 2023, Wolfspeed entered into a definitive agreement to sell its RF product line to MACOM Technology Solutions Holdings, Inc. (MACOM) for approximately $75 million in cash, subject to a customary purchase price adjustment, and 711,528 shares of MACOM common stock, valued at $50 million based on the 30 trading day trailing average closing price for MACOM’s common stock through August 21, 2023. Wolfspeed expects to close the transaction by the end of calendar 2023.

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