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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: EvanG who wrote (10391)7/12/2021 9:04:16 PM
From: slacker711  Read Replies (2) | Respond to of 10634
Cree needed to raise $500 million in February for the current fab.

The question isn't whether they are self funding now. That is obviously not the case but whether they will be in the future. I think that decent execution on the 200mm fab will get them there.

I also don't think that they will be supplying half the capex required on their next fab.

STM is investing $1.8 billion to $2 billion in CAPEX this year, which includes pulling forward their SiC substrate efforts. Just saying that size investment barely dents their finances and they didn't need to dilute their shareholders.

STM has guided for $1 billion in SiC revenue in 2025 which will be substantially less than 10% of their total revenue. I have no doubt that they will beat that number handily but the vast majority of their capex is going to non SiC projects.

Gregg Lowe keeps making it sound like it will be early next year. Think 24 months would be a surprise to most investors.

First wafers and qualification samples in the 1st half of 2022. First revs in the 2nd half of 2022. Margins and yields will suck at the beginning of the ramp so the 1st half of calendar 2023 is when I think we can start saying anything definitive about their choice of 200mm.