Forum Key Insights

Wolfspeed – SiC developments, competitive dynamics and Q4 2022 update

  • Public Equity
  • TMT
  • North America

Third Bridge Forum spoke to a former executive at On Semiconductor Corp to discuss wide bandgap semiconductor manufacturer Wolfspeed, its competitive positioning and the implications of the CHIPS Act. Here are the need-to-know insights from that Interview:

  • he specialist said Wolfspeed is playing an integral part in the shift to 8-inch silicon carbide (SiC) wafers. 
  • They told us that they envisage Wolfspeed being the first to market and set prices for 8-inch SiC wafers. They also believe it will set the standards for quality and efficiency of 8-inch SiC wafer yields – as it did with the 6-inch process. 
  • The specialist expects the 8-inch SiC wafers to debut in 2024.
  • We heard that when Wolfspeed begins manufacturing 8-inch SiC wafers, the company will likely be unable to continue manufacturing 6-inch legacy products at its Mohawk Valley semiconductor fabrication plant (fab). This is due to the large and significant investment made to produce 8-inch SiC wafers.

“I think that Wolfspeed is in a good position to seize the automotive market.”

  • The CHIPS Act is unlikely to be retroactive, according to the specialist, and could help companies like Wolfspeed with future expansion. Click here for more insights on the CHIPS Act.
  • The specialist anticipates that the Chatham County fab dedicated for raw materials – specifically for SiC growth – should deliver on Wolfspeed’s statements of 10x increased SiC production due to the removal of device manufacturing and added capacity from 8-inch wafers.
  • Wolfspeed maintains advantageous relationships with tier 1 OEM’s, as it locks in custom solution packaging agreements, making it difficult for it to be replaced by competitors, according to the specialist. 

For more human insights on semiconductors, click on the transcripts below.

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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