| To: slacker711 who wrote (10642) | 8/14/2024 2:06:46 PM | | From: Lou Weed | | | | | Another big problem that Wolfspeed has in the components market is that it's a one trick pony. ST, Infineon, Onsemi, Rohm have very broad silicon-based parts and technology portfolios. Gate drivers, analog mixed signal, DSPs etc. They can leverage this with end customers to win design slots. |
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| To: slacker711 who wrote (10642) | 8/14/2024 8:03:38 PM | | From: EvanG | | | | However reality intruded on my forecasts. Take a look at ON's results. They have over 50% of their substrates coming from internal production and went from zero to roughly a billion in SiC sales over the last 4 years.
It appears that lower quality substrates are being used for smaller die sizes. Which still results in good yields. At least that appears to be what is happening at Infineon and maybe Onsemi.
Onsemi SiC sales are hard to compare, a lot of it seems to be modules. It seems like they are simply swapping out Si modules for SiC modules and there isn't a large incremental revenue increase between them. Onsemi SiC revenue has also become problematic lately. |
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| To: EvanG who wrote (10644) | 8/14/2024 10:17:22 PM | | From: slacker711 | | | | It appears that lower quality substrates are being used for smaller die sizes. Which still results in good yields. At least that appears to be what is happening at Infineon and maybe Onsemi.
I would assume that's what they are doing as well, but its 50% of substrates at ON so its a significant amount of material.
A long time ago, a Wolfspeed exec said that they would move to trench MOSFETs eventually (smaller dies) but that has yet to happen. The last significant update they gave about their MOSFETs was in 2017 with the announcement of their Gen 3 devices.
Onsemi SiC sales are hard to compare, a lot of it seems to be modules.
Wolfspeed is selling modules as well but we don't know their comparative success rate. Ultimately though, ON/STM/Infineon have managed to ramp revs significantly faster than Wolfspeed with dramatically higher margins as well. The significant technical barriers to SiC havent been nearly as formidable as I had expected (or management projected). |
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| To: slacker711 who wrote (10645) | 8/17/2024 11:07:42 AM | | From: EvanG | | | | The last significant update they gave about their MOSFETs was in 2017 with the announcement of their Gen 3 devices.
The ones starting with E4M are E-series (automotive) Gen 4 MOSFETs. Perhaps there were limitations in what Durham fab could make.
wolfspeed.com |
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| From: Ron | 8/21/2024 6:36:14 PM | | | | | | NC chipmaker Wolfspeed to close Durham HQ factory as company seeks more cost savings
The Durham semiconductor manufacturer Wolfspeed plans to close a production facility near Research Triangle Park as the chipmaker faces capital constraints amid a rough year on Wall Street. “We believe these actions can deliver meaningful cost reductions,” Wolfspeed CEO Gregg Lowe told investors during a call Wednesday. Wolfspeed said it “will be providing more detail” around the planned factory closure at its next earnings call in November. The company employs around 4,500 people worldwide, most based in North Carolina. Formerly called Cree, Wolfspeed is the world’s leading producer of a unique type of semiconductor chip made from silicon carbide.
At this site, Wolfspeed makes 150-millimeter substrates, the standard wafer size in the industry. These substrates are then cut into tiny square “die,” which once fabricated, power electric vehicles and solar converters, among other applications. But Wolfspeed has pioneered production of a larger 200-millimeter substrate, which Lowe said offers “significant die cost advantages.” The company finalizes this bigger substrate at its fabrication factory in New York State’s Mohawk Valley and plans to produce more 200-millimeter wafers at its incoming materials factory near Siler City. “Construction continues to progress well (at Siler City),” Lowe said, noting the facility is on schedule to deliver 200-millimeter wafers to the Mohawk Valley site by next summer. Despite progress toward this larger wafer, Wolfspeed has seen its stock price tumble in 2024, down nearly 70% since Jan. 1 (as the overall market has risen). Its shares closed Wednesday at $13.50, well below Wolfspeed’s $120 share price in September 2022. Since then, the company has battled supply delays and concerns over weakening demand for electric vehicles. On Wednesday, Lowe said “the market is clearly not valuing the company consistent with our technology, the business we built, or the strategic potential of the business.” Investors appeared to respond favorably to Wolfspeed’s decision to close its Durham production factory as the company’s share price rose 9% after the market closed Wednesday. In another bit of optimistic news for the company, Lowe said Wolfspeed is negotiating final terms to receive federal funding through the CHIPS Act, which set aside $52 billion in grants for domestic producers of semiconductors and created a federal tax credit to subsidize projects like the new Siler City factory.
Read more at: newsobserver.com |
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| To: teevee who wrote (10650) | 8/28/2024 5:05:33 PM | | From: slacker711 | | | | The only news I see is some politicians making noise about the Saarland subsidies.
but Wolfspeed isn't going to get that money unless they build the fab and the decision won't even be made until 2025.
So really, I have no idea what is driving the magnitude of the decline over the last two days. |
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| From: teevee | 8/30/2024 4:16:44 PM | | | | | | | a close under $10 will force many institutions to sell. Wolf could go under $5 and likely far worse as this now appears to be setting up to wipe out all equity, leaving the company in creditors' hands. |
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