Wolfspeed announces milestones and operational update

The company states: “Wolfspeed’s Mohawk Valley silicon carbide fab has reached 20% wafer start utilization, a critical step in the Company’s efforts to meet the growing demand for silicon carbide power devices. Additionally, Wolfspeed’s Building 10 Materials facility has achieved its 200mm wafer production target to support approximately 25% wafer start utilization at the Mohawk Valley fab by the end of calendar year 2024. Wolfspeed plans to update the market on its next utilization milestone for Mohawk Valley during its fiscal Q4 2024 earnings call in August. The Mohawk Valley fab has also achieved LEED (Leadership in Energy and Environmental Design) Silver certification, a distinction from the world’s most widely used green building framework and rating system. The LEED Silver certification highlights Wolfspeed’s enduring commitment to going beyond compliance, promoting environmental health and industry leading sustainability. This state-of-the-art Mohawk Valley facility is the world’s first purpose-built, fully automated 200mm silicon carbide fab, and when combined with Wolfspeed’s market-leading 200mm materials production, solidifies Wolfspeed’s competitive position as the only fully vertically integrated 200mm silicon carbide manufacturer at scale. Additionally, Wolfspeed’s John Palmour Manufacturing Center in Siler City, NC, which will be the world’s largest, most advanced silicon carbide materials facility upon completion, has installed and recently activated initial furnaces less than one year after vertical construction commenced. As a result, the facility is on schedule to achieve crystal qualification by early August 2024. This meaningful progress reinforces the Company’s confidence that it is well-positioned to ramp the JP in line with its target to deliver wafers from the facility to Mohawk Valley by the summer of 2025. Wolfspeed also announced that it experienced an equipment incident at its Durham 150mm device fab that resulted in a temporary capacity reduction while the incident was being remediated. Production has been resumed and the Company expects that the Durham 150mm device fab’s capacity utilization can return to previously targeted levels by August. As a result of the production disruption, the Company does not expect an impact on fourth quarter revenue, but does expect to have an underutilization impact and incur other costs in the fourth quarter.”