Wolfspeed (WOLF) Status Update summary

Funding and liquidity update

• Signed a preliminary agreement for up to $750 million in direct funding from the U.S. Department of Commerce under the CHIPS and Science Act, with the first installment expected in 2025.

• Secured an additional $750 million in funding from an investor group led by Apollo, plus an expected $1 billion in cash tax refunds from the Advanced Manufacturing Tax Credit, totaling up to $2.5 billion for U.S. silicon carbide manufacturing expansion.

• Funding supports expansion in North Carolina and New York, including the world's largest 200mm silicon carbide manufacturing footprint.

• Disbursement of funds is tied to operational and construction milestones, with $250 million of debt financing available within 10 business days.

• Obligations include raising $750 million in debt, restructuring or refinancing convertible notes, deferring $120 million in interest payments, and raising up to $300 million in non-debt capital over the next year.

Strategic and operational initiatives

• Transitioning device production to the more efficient Mohawk Valley facility to realize significant annual cost savings.

• Plans underway to reduce overall cost base, streamline operations, and align capital expenditures with market dynamics.

• Closure of the Durham 150mm device fab and assessment of other footprint reductions are in progress.

• Future CapEx spend will be variable and modulated based on market conditions, with reductions already made for fiscal 2025.

• At full utilization, targeted annual revenue from silicon carbide facilities is approximately $3 billion.

Market outlook and strategic positioning

• Funding validates the long-term strategy and supports the mission to lead the global shift from silicon to silicon carbide.

• U.S. investment is essential to maintain domestic supply and competitiveness in semiconductor technology.

• Anticipates dynamic growth in EV and industrial applications, with the transition to silicon carbide seen as highly disruptive for the auto industry.

• Focus remains on accelerating the path to profitability despite new funding.

• Additional government lending and tax credit programs are being pursued to further improve the capital structure.