Wolfspeed (WOLF) UBS Global Technology and AI Conference summary

Market outlook and growth drivers

• EV market remains a key growth area, with 2x year-over-year revenue and a 75% increase in EV models expected in 2025.

• Long-term EV market growth projected at 24%-25% CAGR through the decade, with industrial and energy sectors showing early signs of recovery.

• China leads in EV adoption, with a shift to 800V platforms expected to accelerate silicon carbide penetration beyond the current low 30% range.

• Diverse design-ins are transitioning to production, providing strong future revenue visibility.

• Industrial and energy applications, such as energy storage and data centers, benefit from lower device costs driven by EV demand.

Technology and production strategy

• Transitioning all device production to 200mm wafers, closing the 150mm Durham fab for cost and operational efficiency.

• 200mm wafer production at Mohawk Valley is ramping at volume with strong yield performance.

• 200mm transition offers significant cost advantages, with a 40% lower cost per die compared to 150mm.

• Company is the only device supplier fully moving to 200mm at this scale.

• Focus on maximizing factory utilization to drive margin improvement.

Financial performance and outlook

• Restructuring and cost reductions underway, including closing Durham fab and reducing administrative costs.

• EBITDA positive performance expected at around a $1.1 billion revenue run rate.

• High depreciation from recent investments means cash costs are lower than EBIT suggests.

• CapEx is shifting from construction to tool-based, with a sharp reduction expected in the coming year.

• Free cash flow expected to improve as volume increases and government incentives offset CapEx.