Core Viewpoint - The conference will gather key players in the silicon carbide (SiC) industry, providing a platform for exploring development opportunities and technological advancements in the sector [1]. Conference Details - The conference is scheduled for May 15, from 09:00 to 17:30, at the Shanghai Jin Jiang InterContinental Hotel [2]. - Attendees are encouraged to arrive before 09:00 for timely registration [2]. Transportation Information - From Shanghai Pudong International Airport to the hotel is approximately 37 kilometers, taking about 45 minutes by taxi or 50 minutes via public transport [3]. - From Shanghai Hongqiao International Airport to the hotel is about 20 kilometers, with a taxi ride taking around 35 minutes or 50 minutes using public transport [3]. Conference Agenda - The conference will feature two thematic forums and an all-day exhibition, focusing on the SiC industry [5]. - The launch of the "2025 Silicon Carbide Substrate and Epitaxy Industry Research White Paper" and "2025 Silicon Carbide Devices and Modules Industry Research White Paper" will take place during the event [5]. - The afternoon session will include a seminar on SiC technology applications in electric transportation [5]. Exhibition Highlights - A dedicated exhibition area will showcase new products and technologies from various companies, enhancing networking and collaboration opportunities [7]. - Companies such as Mitsubishi Electric, Guojijinan, and others will present their latest innovations [8]. Sponsorship and Participation - Companies like Hesheng New Materials and Jihua Hengyi are sponsoring the event by providing promotional materials and product information [9].

Core Viewpoint - The upcoming "Electric Transportation & Digital Energy SiC Technology Application and Supply Chain Upgrade Conference" in Shanghai aims to address key challenges and opportunities in the SiC industry, focusing on 8-inch SiC technology and automotive-grade SiC chip manufacturing [2][12]. Group 1: Conference Highlights - The conference will feature nearly 20 leading SiC companies, including Mitsubishi Electric, STMicroelectronics, and Wolfspeed, presenting the latest industry insights and innovative solutions [13]. - A focus on collaborative efforts in the 8-inch supply chain to overcome challenges in material mass production will be highlighted by companies like Tianke Heda and Dazhu Semiconductor [15]. - A roundtable forum will include discussions on the current state and challenges of SiC applications in the new energy market, as well as global development trends for the SiC industry by key players [18]. Group 2: Digital Energy SiC Technology Application Seminar - The morning session will feature presentations from STMicroelectronics, Wolfspeed, and Hong Kong University, discussing advancements in SiC technology and its applications in digital energy [23]. - STMicroelectronics will present its strategies for the Chinese market and advancements in 8-inch SiC wafer technology [23]. - Wolfspeed will showcase how its fourth-generation SiC MOSFET technology is transforming industrial automation and aerospace drive systems [23]. Group 3: Electric Transportation SiC Technology Application Seminar - The afternoon session will include in-depth technical analyses from companies like Mitsubishi Electric and Sanan Semiconductor, focusing on cost reduction and efficiency improvements in electric transportation applications [24]. - Mitsubishi Electric will present its solutions for SiC power semiconductors in high-voltage fast charging and electric drive systems [24]. - Sanan Semiconductor will discuss the latest advancements in packaging technology for SiC power devices [24]. Group 4: SiC Industry Chain Exhibition - The conference will feature a dedicated exhibition area showcasing the latest technologies from various industry players, promoting industry exchange and resource integration [26]. - Companies like Hantian Tiancheng and Zhongdian Guojinan will present their latest SiC products and solutions [27]. Group 5: Launch of SiC White Papers - The conference will also mark the launch of two white papers focusing on the progress and trends in the SiC substrate and epitaxy industry, as well as the applications of SiC in electric transportation and digital energy [28]. - The research initiative aims to create a comprehensive industry consensus covering the entire substrate-device-system chain [28].

Group 1 - The global N-type SiC substrate industry revenue is expected to decline by 9% in 2024, reaching $1.04 billion due to weakened automotive and industrial demand, increased market competition, and significant price drops [1] - Despite facing dual pressures of weak demand and oversupply in 2025, the long-term growth trend for SiC remains unchanged, with broader applications anticipated, especially in the industrial sector [1] - The intense market competition is expected to accelerate industry consolidation, reshaping the development landscape of the SiC substrate market [1] Group 2 - Wolfspeed maintains its position as the leading supplier in the SiC materials market with a market share of 33.7% in 2024, despite operational challenges [4] - Chinese companies TanKeBlue and SICC are rapidly developing, with market shares of 17.3% and 17.1%, respectively, ranking second and third [4] - The 6-inch SiC substrate is expected to continue dominating the market due to rapid price declines, while the 8-inch substrate is seen as essential for further cost reduction and technology upgrades, with an estimated market share of over 20% by 2030 [4]

Group 1 - The article discusses the ongoing challenges faced by Wolfspeed (NYSE: WOLF) as it transitions into a silicon carbide provider, leading to significant capital expenditures and substantial operating losses [1] - The transition to silicon carbide has not yielded the expected results, indicating a prolonged period of difficulties for the company [1] - The investing group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports, providing coverage of 10 significant events monthly [1]

Group 1 - The article suggests that there are opportunities in undervalued stocks that are mispriced by the market as of May [1] - It emphasizes the importance of conducting personal research before making investment decisions [3] - The article does not provide specific stock recommendations or advice on suitability for particular investors [4]

Revenue and Financial Performance - Revenue for the nine months ended March 30, 2025, decreased by $45.9 million to $560.6 million, primarily due to weaker demand in industrial and energy markets, partially offset by growth in automotive products [133]. - Revenue for the three months ended March 30, 2025, was $185.4 million, down 8% from $200.7 million in the same period in 2024 [142]. - Power Products revenue decreased by 5% to $107.5 million, while Materials Products revenue fell by 21% to $77.9 million for the three months ended March 30, 2025 [142]. - For the nine months ended March 30, 2025, net cash used in operating activities increased to $469.2 million, a 9% increase from $431.8 million in the same period last year [171]. Profitability and Margins - Gross margin decreased to -17.1% from 12.4%, impacted by underutilization costs related to the Mohawk Valley Fab and restructuring costs from the Durham Fab [133]. - Gross profit for the three months ended March 30, 2025, was a loss of $22.5 million, compared to a profit of $22.5 million in the same period in 2024, resulting in a gross margin of (12.1)% [143]. - Diluted loss per share was $6.88, up from $3.18 year-over-year [133]. Expenses and Investments - Operating loss increased to $747.6 million compared to $299.4 million in the previous year [133]. - Research and development expenses decreased by 20% to $42.2 million for the three months ended March 30, 2025, representing 23% of revenue [144]. - Sales, general and administrative expenses decreased by 26% to $41.1 million for the three months ended March 30, 2025, representing 22% of revenue [145]. - Factory start-up costs increased by 63% to $23.5 million for the three months ended March 30, 2025, due to construction costs for a new manufacturing facility [147]. - Cash used in investing activities decreased significantly by 84%, from $1,571.4 million to $254.5 million, primarily due to reduced capital expenditures [171]. Debt and Cash Position - Cash, cash equivalents, and short-term investments totaled $1,329.6 million as of March 30, 2025, down from $2,174.6 million at June 30, 2024 [133]. - Long-term debt increased to $6,511.8 million as of March 30, 2025, compared to $6,161.1 million at June 30, 2024 [133]. - As of March 30, 2025, the company had approximately $1,329.6 million in unrestricted cash and cash equivalents, compared to scheduled debt repayments of $575 million and debt service costs of $322 million over the next 12 months [160]. Capital Investment and Future Plans - The company incurred approximately $0.8 billion in net capital investment for the nine months ended March 30, 2025, with an additional $0.2 billion expected in Q4 of fiscal 2025 [137]. - Major expansion projects at the Mohawk Valley Fab and Siler City, NC facility are nearing substantial completion, with gross capital investment expected to decrease significantly to approximately $0.2 billion in fiscal 2026 [138]. - The company anticipates gross capital investment to decrease significantly to approximately $0.2 billion in fiscal 2026 [168]. - The company expects to need additional funding for capacity expansions and may consider reducing capital expenditures to preserve working capital [156]. Design Wins and Market Position - Design-wins for the third quarter of fiscal 2025 were the second highest in company history, indicating a ramp-up in previously reported design-ins [139]. - The company is focused on transitioning from 150mm to 200mm silicon carbide devices as part of its 2025 Restructuring Plan [136]. Non-Operating and Other Expenses - Non-operating expense, net, was $90.9 million for the three months ended March 30, 2025, an increase of 114% compared to $42.4 million in the same period in 2024 [151]. - Loss on disposal or impairment of long-lived assets was $31.1 million for the three months ended March 30, 2025, a significant increase from $0.6 million in the same period in 2024 [148]. Funding and Tax Refunds - In Q3 fiscal 2025, the company received an initial federal cash tax refund of $186.5 million related to AMIC claims under Section 48D of the Internal Revenue Code [158]. - The company expects to submit for approximately $600 million in cash tax refunds related to AMIC over the next 12 months [160]. - The company raised approximately $200.0 million through the sale of 27.8 million additional shares of common stock as part of an at-the-market program [157]. Supplier Agreements and Market Value - The company has take-or-pay supplier agreements requiring a minimum of $209.9 million in purchases over the next five years [169]. - As of March 30, 2025, the market value of MACOM common stock held by the company was approximately $70.1 million, with a potential decrease of $7.0 million if market values hypothetically drop by 10% [180].

Core Viewpoint - Wolfspeed reported a non-GAAP loss of 72 cents per share for Q3 fiscal 2025, which was better than the Zacks Consensus Estimate by 12.2%, but revenues of $185.4 million decreased 7.6% year over year, missing the consensus mark by 0.48% [1] Revenue Breakdown - Power Products accounted for 58% of total revenues, generating $107.5 million, a 5.3% increase year over year, while Materials Products contributed 42% with revenues of $77.9 million, down 21% year over year [2] Operating Performance - The non-GAAP gross margin was 2.2%, significantly down from 14.9% in the prior year, impacted by $26.3 million in underutilization costs [3] - Sales, general and administrative expenses were $41.1 million, representing 22.2% of total revenues, a decrease of 26.3% year over year [3] - Research and development expenses were $42.2 million, or 22.8% of total revenues, down 19.6% year over year, with restructuring charges of $57 million incurred during the quarter [4] - The non-GAAP operating loss widened to $110.8 million from $77.7 million in the year-ago quarter [4] Financial Position - As of March 30, 2025, Wolfspeed had cash, cash equivalents, and short-term investments totaling $1.3 billion, with long-term debt at $3.47 billion [5] - Free cash outflow was $168 million, consisting of $142 million in operating cash outflow and $26 million in capital expenditures, net of $192 million in reimbursements from 48D cash tax refunds [5] Guidance - For fiscal year 2025, Wolfspeed anticipates total revenues of approximately $756 million, with power and material revenues expected to be $410 million and $345 million, respectively, and a non-GAAP gross margin of around 2.1% [6] - For fiscal year 2026, the company projects revenues of $850 million [6] Market Position - Wolfspeed currently holds a Zacks Rank of 4 (Sell), while Chegg, GCT Semiconductor Holding, and Magnachip Semiconductor are better-ranked stocks in the sector, each carrying a Zacks Rank of 2 (Buy) [7]

Company Performance - Wolfspeed reported a quarterly loss of $0.72 per share, better than the Zacks Consensus Estimate of a loss of $0.82, but worse than a loss of $0.62 per share a year ago, indicating an earnings surprise of 12.20% [1] - The company posted revenues of $185.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.48%, and down from $200.7 million year-over-year [2] - Over the last four quarters, Wolfspeed has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Outlook - Wolfspeed shares have declined approximately 38.3% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.80 on revenues of $194.77 million, and for the current fiscal year, it is -$3.30 on revenues of $756.27 million [7] - The estimate revisions trend for Wolfspeed is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Semiconductor - Discretes industry, to which Wolfspeed belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Wolfspeed's stock performance [5]

Financial Data and Key Metrics Changes - The company generated revenue of $185 million in Q3 2025, which is in line with the guidance midpoint and represents a 2.2% sequential increase [19] - Non-GAAP gross margin was 2.2%, driven by contributions from Mohawk Valley, offset by lower utilization at the Durham 150mm device fab [20] - Adjusted EPS was negative $0.72 per share, exceeding the high end of the guidance range [20] - The company ended the quarter with over $1.3 billion in cash and liquidity, including $200 million from an equity offering and $192 million from tax refunds [22] Business Line Data and Key Metrics Changes - Power revenue reached $107 million, primarily driven by significant growth in automotive revenue, while industrial and energy revenues saw a slight decrease [19] - Materials revenue was $78 million, largely affected by slowing demand from materials customers across the device market [19] - Mohawk Valley contributed $78 million in revenue, showing a 50% sequential growth and over 175% year-over-year growth [12][19] Market Data and Key Metrics Changes - The company is actively engaged with customers on sampling 200mm materials and pursuing new contracts for 200mm wafer supply, indicating strong market engagement [12] - The transition to a fully automated 200mm manufacturing footprint is expected to enhance competitiveness in high-growth areas of the silicon carbide market [17] Company Strategy and Development Direction - The company aims to improve its capital structure and financial performance while focusing on silicon carbide technology as a long-term growth driver [13][14] - A strategic decision has been made to exit the 150mm device market, aligning the company to pursue growth in high-value verticals [17] - The company is targeting a reduction in its non-GAAP EBITDA breakeven point to approximately $800 million annually [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and potential for long-term growth under new leadership [27] - The focus will be on reaccelerating revenue growth and enhancing profitability through operational excellence and quality assurance [9][10] - Management acknowledged the challenges but emphasized that actions taken are designed to position the company for growth and success [18] Other Important Information - The company is undergoing a restructuring process, with projected restructuring charges of $400 million to $450 million for fiscal 2025 [21] - The company has engaged external experts to identify additional cost-saving measures beyond current initiatives [14] Summary of Q&A Session - No questions were taken during the conference call, as stated by the operator [5]

Financial Data and Key Metrics Changes - The company generated revenue of $185 million in Q3 2025, which is in line with guidance and represents a 2.2% sequential increase [18] - Non-GAAP gross margin was 2.2%, driven by contributions from Mohawk Valley, offset by lower utilization at the Durham 150mm device fab [19] - Adjusted EPS was negative $0.72 per share, exceeding the high end of the guidance range [19] - The company ended the quarter with over $1.3 billion in cash and liquidity, boosted by a $192 million cash tax refund [21][22] Business Line Data and Key Metrics Changes - Power revenue reached $107 million, primarily driven by significant growth in automotive revenue, slightly offset by decreases in industrial and energy revenues [18] - Materials revenue was $78 million, largely due to slowing demand from materials customers across the device market [18] - Mohawk Valley contributed $78 million, showing a 50% sequential growth and over 175% year-over-year growth [19] Market Data and Key Metrics Changes - The company is actively engaged with customers on sampling 200mm materials and pursuing new contracts for 200mm wafer supply, indicating strong market engagement [11] - The transition to 200mm manufacturing is expected to result in lower costs and higher quality wafers, aligning with high-growth areas of the silicon carbide market [15] Company Strategy and Development Direction - The company is focused on improving its capital structure and financial performance, with a target of achieving approximately $200 million of positive unlevered operating cash flow in fiscal 2026 [16] - The strategic decision to transition to a pure play 200mm silicon carbide producer is aimed at reducing operating expenditures and accelerating the path to profitability [15][27] - The company is pursuing opportunities in specialized markets such as AI data centers, energy storage, EVs, and aerospace and defense [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and potential for long-term growth under new leadership [25] - The company is committed to returning to core innovation and focusing on technologies where silicon carbide delivers the greatest impact [26] - Management acknowledged the challenges faced but emphasized that actions taken are designed to position the company for growth and success [17] Other Important Information - The company is undergoing significant restructuring, including a 30% reduction in the senior leadership team and a 25% reduction in total company employment [20] - Restructuring charges for fiscal 2025 are projected at $400 million to $450 million, with $57 million incurred in the latest quarter [20] - The company is in the final stages of transitioning to 200mm manufacturing and simplifying its operational footprint [14] Q&A Session Summary - No questions were taken during the conference call, as noted in the initial remarks [4]