Specialist
Former manager at Wolfspeed Inc
Agenda
- Wolfspeed’s (NYSE: WOLF) key developments within SiC (silicon carbide) manufacturing and distribution
- Competitive landscape of SiC substrates and devices – mid-term market share dynamic outlook and demand drivers
- Industry challenges towards the transition to 200mm or eight-inch SiC wafers
- H2 2023 outlook
Questions
1.
We saw a really accentuated 2022. Could you break down the growth we’ve seen and the increasing industry adoption of SiC [silicon carbide]? What major developments would you highlight?
2.
Where would you place Wolfspeed within the value chain? The company is obviously involved in manufacturing, but where else does it play? What other key companies would you pick out? Would you highlight any potential threats to its business in the competitive landscape?
3.
You spoke about this increasing competition on the device end, which is something we’ve started to see some signs of. When do you think we’ll start to see a marked effect on the overall pricing and cost of these devices as a result of the amount of competition?
4.
You mentioned that some companies are able to focus specifically on the devices and we’re starting to see some devices with better capabilities than Wolfspeed can offer. Might there be a risk of the company being spread too thin, given its level of vertical integration and entrenchment across all different aspects of the SiC supply chain?
5.
You attributed Wolfspeed’s advantage on the substrate side to its incumbency and knowledge in the space. As production and devices ramp up in the next 3-7 years, roughly how much of a SiC device do you think will be made up of the company’s components? How do you see the content or pricing of its components within devices trending?
6.
Wolfspeed has faced pressure from competitors in 150mm, and you stated you believe it’s likely the company will cease to be the dominant player. Which companies come to mind as competitors? Are you thinking of players such as Onsemi and STMicroelectronics?
7.
Which player do you think is most likely to develop 200mm capabilities in the coming year?
8.
What do you consider to be the inflection point at which the technology we’re discussing becomes more commercialised? What do you think needs to happen before we start to see an 80-85% yield for 200mm on the substrate end?
9.
A specialist in a previous Forum Interview [see Tesla – SiC Sentiment & Trajectory & H2 2023 Outlook – 10 April 2023] posited that the critical range for yields on the substrate end would be 80-85%. Would you agree with that?
10.
What major challenges in the 200mm manufacturing and ramp-up would you say Wolfspeed has largely overcome? What big challenges still loom large?
11.
How important do you think Wolfspeed’s new raw materials fab in Siler City is to the company’s roadmap? What are your thoughts on current utilisation rates?
12.
President Biden recently toured North Carolina following the passage of the CHIPS [Creating Helpful Incentives to Produce Semiconductors] Act, and there has been a focus on domestic semiconductor manufacturing. How important do you think an established PPP [public-private partnership] will be moving forwards for US semiconductors? What should we expect to see? We’re seeing it with Wolfspeed now – should we expect to see similar things throughout the rest of the industry?
13.
Wolfspeed announced a partnership with Jaguar Land Rover in October 2022. Given the automotive sector is probably the biggest driver of SiC growth and adoption, should we expect to see Wolfspeed securing more of these partnerships? I assume they ultimately lead to design wins.
14.
Do you see any risk from the SiC industry and its growth being so directly tied to the growth of EVs?
15.
Tesla announced in March 2023 that it wants to cut per-transistor SiC content by 75%. In the short term, we saw some negative pullback to chip- and substrate makers, but a lot of companies and professionals are coming forwards and calling this an overreaction and an overstatement. What are your thoughts on this?
16.
Would you expect overall SiC content within the automotive sector to continue to trend higher?
17.
What’s your outlook for Wolfspeed? What excites you the most about the remainder of 2023? What should we be keeping an eye on?
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