|I also thought that this was interesting. I thought that the question would be shot down but they answered in such a way to clearly communicate that shifting capacity from LED's to Wolfspeed is a possibility. |
They also talked about trying to double their capacity faster than their previous 24 month timeline. The only thing missing from the call was an increased target for Wolfspeed revenue in 2022 (think it is $850m right now)....but it makes sense to under promise and over deliver.
Hey thanks. Just a follow-up. Gregg, just with respect to the tightness in the markets, and I'm sure you've looked at this. But could you provide any insight in terms of the fungibility associated with the LED business and the Wolfspeed business with respect to lead-time and as well as maybe some greater clarity on switch out costs associated with that?
Sure. From a material base wafer or silicon carbide wafer perspective, the fungibility is extremely high and extremely fast, so we can move crystal growth capability from one to the other pretty, pretty readily and be up in production and running and turning that into revenue very, very quickly. So, that's highly fungible and relatively fast.
From a wafer production standpoint, that is also highly fungible. Between the two, I don't -- I can't give you the exact percentage, but a very, very high percentage of these tools are going to be very similar.
There, of course, you have to go through a process of qualifying a product in a different fab and so forth, so it takes a little bit longer. We were able to qualify very recently some power products in another line that was running in the LED fab. So, we're seeing a little bit of relief right there. But yes, obviously, that takes a lot more work. And you got to get qualification and you got to get customer approval, all these sort of things. So, in both instances, the capacity is highly fungible, in one, it ramps a lot faster.
Got it. So just when we look at whether it's three, four or five, whatever the demand increase on that logarithmic curve is based on EVs, the $220 million plus, you could essentially shutter the LED to half that capacity, keep that at 100% utilization and shift that over within a quarter or two, correct?
I don't know about the quarter or two from customer acceptance and so forth, but yes, we can shift that over. Timing guys really need to think through, but it's probably a little longer than that.