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The company is now selling a premium version of its 200mm silicon carbide substrates, which are the base materials used to make power chips for electric vehicles. These new wafers are designed to have fewer physical defects, which should help the company and its customers produce more working chips from every batch.
This matters because Wolfspeed is currently betting its future on its massive new Mohawk Valley factory. That facility uses larger 200mm wafers to lower costs, but the transition has been difficult and expensive. Improving the yield, or the percentage of chips that come out without flaws, is the most direct way for the company to stop losing money and start making the most of its huge investment in new machinery.
Source: Business Wire
Wolfspeed announced that Aris Bolisay will step down from its board on September 27, 2026. Mr. Bolisay was the representative for Renesas Electronics, a Japanese chipmaker that has a partnership and supply agreement with Wolfspeed. Renesas will appoint a board observer to take his place and keeps the right to name a full director again in the future.
The company noted that the departure is not due to any disagreement. While board changes can sometimes signal friction, this looks like a routine adjustment to a partnership. Renesas remains a key customer and partner as Wolfspeed tries to fill its new factories with orders for silicon carbide chips, which are used to manage power in electric vehicles.
Source: 8-K filing
Wolfspeed reported a loss of $2.26 per share, which was better than the $2.45 loss analysts had projected. Revenue came in at $150 million, matching expectations. While the company is still losing money as it builds out its massive new factories, its sales to AI data centers more than doubled over the past year. This growth helps diversify the business beyond electric vehicles, which have been its primary focus.
The company is betting its future on a transition to larger 200mm silicon carbide wafers, a material that handles high power more efficiently than standard silicon. This move is designed to lower manufacturing costs over time, but the high expense of running these new facilities before they are full of orders continues to weigh on the bottom line. For long-term owners, the focus remains on how quickly the company can fill its new Mohawk Valley factory to turn these heavy losses into profits.
Wolfspeed is scheduled to report its quarterly earnings today. Analysts are looking for a loss of about $2.45 per share on revenue of roughly 150 million dollars. The most important thing to watch is how quickly the company is filling its new Mohawk Valley factory. Wolfspeed is spending heavily to build these large-scale facilities, and it needs high production levels to cover those costs and stop the current cash burn.
Wolfspeed is scheduled to share its quarterly results on August 19. Analysts expect the company to report a loss of about $2.45 per share on revenue of roughly $150 million. The focus will likely be on the Mohawk Valley factory, a giant new facility designed to make chips more efficiently. Investors are watching to see if the company can fill that factory with enough orders to cover its high running costs and slow its cash burn, which is the amount of money a business spends beyond what it brings in.
Management consistently clears the low bars they set, but the business is still losing massive amounts of cash as it shifts to a new factory.
| Expectation | |
|---|---|
| EPS | $-1.98 |
| Revenue | $150M |