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MACOM Technology Solutions Holdings, Inc. announced that it has entered into a definitive agreement to acquire the radio frequency business of Wolfspeed, Inc. The RF Business includes a portfolio of Gallium Nitride (“GaN”) on Silicon Carbide (“SiC”) products used in high performance RF and microwave applications.
The business services a broad customer base of leading aerospace, defense, industrial and telecommunications customers and most recently generated annualized revenues of approximately $150 million. The acquisition is expected to be immediately accretive to MACOM’s non-GAAP earnings.
“We are excited to acquire Wolfspeed’s RF Business and look forward to welcoming its employees to MACOM,” stated Stephen G. Daly, President and Chief Executive Officer, MACOM. “The RF team’s engineering capabilities, technology and products are a perfect fit with MACOM and our strategy.”
The acquisition includes a 100mm GaN wafer fabrication facility in Research Triangle Park, North Carolina (the “RTP Fab”) with operations conveying to MACOM approximately two years following the closing and Wolfspeed’s relocation of certain production equipment.
The acquisition also includes design teams and associated product development assets in Arizona, California and North Carolina, as well as back-end production capabilities in California and Malaysia. In addition, MACOM will be assigned or licensed a robust intellectual property portfolio including over 1,400 patents associated with the RF Business.
The RF Business will be acquired for $125 million, including $75 million cash paid at closing and $50 million of MACOM common stock issued with certain restrictions. A workforce of approximately 280 employees is expected to join MACOM at closing, with additional employees joining when the RTP Fab conveys.
Closing of the transaction is subject to the expiration of a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other closing conditions and is expected to occur in the second half of calendar year 2023.
Original – MACOM Technology Solutions
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Axcelis Technologies, Inc. announced a shipment of a Purion H200™ SiC ion implant system to Wolfspeed. The evaluation system will be used to support the production of power devices for electric vehicle (EV) applications.
President and CEO Dr. Russell Low of Axcelis commented, “The power device market continues to grow rapidly and is a key driver of our growth globally. We are pleased to continue to support Wolfspeed’s fab capacity expansion and are also excited about the potential of this new opportunity focused on high current implant applications in silicon carbide power devices.”
“The popularity of electric vehicles is only steepening, and Wolfspeed is focused on scaling our capacity to meet the surge in demand for our silicon carbide devices. We partnered with Axcelis due to their expertise, highly differentiated features, and process control capabilities that are essential for power device applications,” said Missy Stigall, Wolfspeed senior vice president of global fab operations. “Together, we will work to ease supply chain constraints as more and more EVs utilizing Wolfspeed’s silicon carbide technology are introduced to the market.”
Wolfspeed is currently engaged in a $6.5 billion capacity expansion effort to dramatically increase production. This includes the John Palmour Manufacturing Center for Silicon Carbide, the world’s largest Silicon Carbide crystal growth facility currently under construction in North Carolina, and the final build-out of the company’s Mohawk Valley Fab in New York. Earlier this year the company also announced its plans to build a highly automated, cutting-edge 200mm wafer fabrication facility in Saarland, Germany.
Original – Axcelis Technologies
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Silicon Carbide allows for more efficient, smaller, and more capable power conversion systems but getting the most out of these wide-bandgap devices requires intentional selection of everything around the switch. One of the most important parts of the system is the gate driver. The gate drive solution directly impacts the switching efficiency of the SiC MOSFET as well as can have features to make systems more reliable like Miller Clamp and Short Circuit Protection.
From the protection features available on the market today, to the robustness of isolated gate driver solutions, this training will teach about the intricacies of Silicon Carbide needs in gate drivers, the variety of gate drivers available, and the benefits of the various features that gate drivers can provide to the system designer.
During this webinar you will learn:
- Benefits of Silicon Carbide devices in power systems
- Why we need gate drivers for power MOSFETs
- Particulars of driving SiC MOSFETs
- Common Mode Transient Immunity
- Sizing the gate driver power supply and how to implement it
- Why certain gate drive voltages are recommended and application considerations
- Benefits of additional gate driver features for system design
- Miller Clamping
- Short Circuit Protection
- Fault Reporting
- Which gate drivers should be considered depending on the application, including the offering from Analog Devices
- Resources available to design in Silicon Carbide and SiC Gate Drivers
- Date: Wednesday, July 26, 2023
- Time: 9:00 am EDT | 15:00 CET
- Duration: 1 hour
Original – Arrow
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Wolfspeed, Inc. announced that CEO Gregg Lowe has been elected to serve on North Carolina Agricultural and Technical State University’s (N.C. A&T) Board of Trustees. N.C. A&T is the nation’s No. 1-ranked historically black college or university (HBCU).
“North Carolina A&T is proud of our continued strong partnership with Wolfspeed and the appointment of CEO Gregg Lowe to our Board of Trustees,” said N.C. A&T Chancellor Harold L. Martin, Sr. “Gregg’s leadership and extensive science and technology background will serve as a vital resource for our prestigious university. I look forward to working with him as we provide new opportunities for our students to pursue the next generation of careers in the green economy, drive innovation and look to solve the problems of both today and tomorrow.”
“I am excited to join the North Carolina A&T Board of Trustees and to serve their students and community,” said Lowe. “Wolfspeed firmly believes in the power of students to change the world, and I’m eager to further strengthen our relationship while working together to usher in the next generation of scientists, technologists and innovators.”
Wolfspeed and N.C. A&T share a rich history of partnership and collaboration. In 2020, Wolfspeed committed $4 million over five years to the HBCU, the single largest donation in the university’s history at that time, to create the Wolfspeed Endowed Scholars Program.
The two entities worked together to establish comprehensive education and training curricula and cutting-edge research and innovation programs. This partnership has opened opportunities for undergraduate and graduate credentials in silicon carbide semiconductor manufacturing, as well as training and career advancement programs for existing semiconductor manufacturing workers.
During President Biden’s visit to Wolfspeed headquarters earlier this year, Wolfspeed announced the continuation of this collaboration with their intent to apply for CHIPS and Science Act funding to build a new research and development facility on North Carolina A&T’s campus. The R&D facility will be focused on silicon carbide to support the next generation of advanced compound semiconductors.
Original – Wolfspeed
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Power semiconductors companies continue to invest heavily in new factories, production capacity expansions, and R&D centers. Thus, recently the total value of the active investment projects launched since 2021 has surpassed 70 billion USD.
Driven by the pandemic and geopolitics, major power semiconductors companies started to invest more in new factories and joint ventures to have more confidence in their own supply chain in the future.
As of today, it is obvious to see the major split of power semiconductors into three geographical regions – the USA, Europe, and Asia. Asia may as well be divided into several regions with China being the leading investor of all.
Despite the ongoing tensions and export restrictions between the US, Europe, and China related to advanced semiconductors, when it comes to power semiconductors European companies continue to invest in the Chinese market expanding their product capacity or establishing new joint ventures like STMicroelectronics and Sanan Optoelectronics did recently.
Even with some delay, Japanese companies like ROHM, Mitsubishi Electric, Fuji Electric, Renesas Electronics, Toshiba, and others, pushed by their US and European competitors, announced their own projects aimed to secure the capacity on the wafer and device level to correspond to the growing demand for Si and SiC based power semiconductors coming from the electric vehicle and charging, photovoltaics, battery energy storage systems, and the other emerging applications.
If we take a closer look at all projects announced, SiC is the leading technology with over 60% of total investment. Over 25 market leaders announced their plans to invest in silicon carbide.
Thus, ROHM is investing in new production to multiply its SiC capacity in the coming years. Mitsubishi Electric teams up with Coherent to scale manufacturing of SiC power devices on a 200 mm SiC technology platform as one of the steps of their 260 billion yen investment project planned till March 2026.
Infineon Technologies continues to bet on both local European and Asian markets investing in their new fab in Dresden and expanding backend operations in Indonesia. STMicroelectronics continues to invest in WBG semiconductors with the ongoing construction of a new wafer fab in Sicily announced in 2022.
With a global total number of new investment projects of over 80, the US companies Wolfspeed, onsemi, and Microchip Technology, similar to their European counterparts, invest locally, in Europe and Asian markets. Totally the US semiconductor companies announced new projects valued at almost 9 billion USD.
With the US and EU Chips Acts, and similar initiatives in China, Japan, South Korea, and some other countries, it is clear that the investment into power semiconductors industry will continue to reach 100 billion USD soon.
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Wolfspeed, Inc. announced the promotion of Priya Almelkar to Senior Vice President, IT and Chief Information Officer. Almelkar succeeds David Costar and becomes the fifth female member of Wolfspeed’s esteemed senior leadership team.
“Over her two-and-a-half-year tenure with Wolfspeed, Priya has consistently showcased exceptional technical expertise and inspiring leadership skills,” said Gregg Lowe, CEO of Wolfspeed. “Her invaluable contributions have significantly enhanced our company’s information systems and processes. Her promotion not only recognizes her skills and contributions, but also reinforces our belief in the power of diverse perspectives and experiences in driving innovation and success. I am eager to witness the advancements she will spearhead in her new role.”
As Vice President of IT Manufacturing Operations, Almelkar played a pivotal role in driving Wolfspeed’s transition to automation, empowering the company’s analytics capabilities while ensuring data integrity and accuracy. This data-based transition has enabled enhanced tracking of customer deliveries, valuable market and competitor insights, and has improved operational efficiency.
“Wolfspeed’s ambitious growth strategy presents ample opportunities to improve IT process efficiency and compliance,” said Almelkar. “I am thrilled to continue collaborating with such knowledgeable and entrepreneurial colleagues to strengthen our digital footprint and advance our mission of energy conservation through silicon carbide.”
With over 25 years of experience in leading core IT functions and implementing large-scale digital transformations, Almelkar brings a wealth of expertise to her role. Prior to joining Wolfspeed, she spent six years at Global Foundries, where she held several positions, including Head of Digital Transformation and Head of Infrastructure.
Earlier in her career, she excelled in program management, information security and solution delivery engineering. Almelkar is also proud to serve as a sponsor of the Asian American and Pacific Islander (AAPI) Employee Resource Group at Wolfspeed, exemplifying the company’s commitment to diversity and inclusion. In acknowledgement of her leadership and service to the industry, she has been recognized by the National Association of Manufacturers.
Original – Wolfspeed
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If you haven’t had a chance to visit a wonderful Lake Maggiore yet, this September you can enjoy one of the most beautiful places in Italy in a company of power semiconductors superstars discussing SiC & GaN technologies. After a successful series of events across the world, International Semiconductor Executive Summits (ISES) returns to Italy with ISES EU Power 2023 edition.
With a regional focus on the power semiconductor market, the EU Power International Semiconductor Executive Summits seeks to strengthen the EU supply chain and promote key executives in the semiconductor manufacturing, design, and research through our networking and conference platform which consists of working with key industry stakeholders to encourage progress and collaboration.
With speakers coming from STMicroelectronics, Infineon Technologies, Semikron Danfoss, onsemi, Wolfspeed, Renesas, ROHM, Nexperia, SK Siltron, Soitec, Okmetic, Aehr Test Systems, Amkor Technology, Innoscience, Cambridge GaN Devices, Ferrari, Volkswagen, Volvo, Škoda, and many more leaders of power electronics and automotive industries, you are about to be a part of the power semiconductors event like never before.
During two days of the event, all participants will be discussing and disclosing the latest news and advances in silicon carbide and gallium nitride technologies, sharing the view of the future and taking a close look at the current state of the industry, supply chain, global collaboration, exhisting problems and emerging opportunities.
You can find the agenda of ISES EU Power 2023 at the event website.
International Semiconductor Executive Summit EU Power provides a unique platform for networking and expanding your knowledge base. Here are just a few topics that will be covered this September:
- SiC and GaN Manufacturability
- Variety of WBG Applications
- SiC Wafer & Materials
- Power Packaging
- Design and Reliability
The event offers various packages for participation:
- Standard Pass
- Member Pass
- Partner Pass
- Virtual Pass
- Numerous Sponsorship Packages and VIP Passes
All interested to participate can register at ISES EU Power 2023 website.
ISES EU Power 2023 will take place at Regina Palace Hotel. Overlooking the shore of Lago Maggiore, the Regina Palace Hotel is located in a favored spot in the center of Stresa, considered the pearl of Lago Maggiore. The hotel represents yesteryear’s charm and prestige enriched by the history and the grace that each epoch has donated.
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Wolfspeed, Inc. issued the following statement regarding the recent decision by the Chinese Ministry of Commerce to restrict the export of gallium and germanium which is scheduled to take effect on August 1, 2023. The statement can be attributed to Wolfspeed spokesperson Melinda Walker.
“Following an internal review, the company has confirmed that its supply chain will not be impacted by the proposed export restrictions on gallium and germanium. Wolfspeed strives to manage its supply chain with our supply partners through principles such as quality, availability, social responsibility, and cost. We appreciate that global events can lead to dynamic market conditions that will require us to periodically review our supply chain, and we will continue to do so to ensure Wolfspeed’s needs are fulfilled.”
Original – Wolfspeed
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Renesas Electronics Corporation and Wolfspeed, Inc. announced the execution of a wafer supply agreement and $2 billion (USD) deposit by Renesas to secure a 10 year supply commitment of silicon carbide bare and epitaxial wafers from Wolfspeed. The supply of high-quality silicon carbide wafers from Wolfspeed will pave the way for Renesas to scale production of silicon carbide power semiconductors starting in 2025. The signing ceremony of the agreement was held at Renesas’ headquarters in Tokyo between Hidetoshi Shibata, President and CEO of Renesas, and Gregg Lowe, President and CEO of Wolfspeed.
The decade-long supply agreement calls for Wolfspeed to provide Renesas with 150mm silicon carbide bare and epitaxial wafers scaling in CY2025, reinforcing the companies’ vision for an industry-wide transition from silicon to silicon carbide semiconductor power devices. The agreement also anticipates supplying Renesas with 200mm silicon carbide bare and epitaxial wafers after the recently announced John Palmour Manufacturing Center for Silicon Carbide (the “JP”) is fully operational.
The need for more efficient power semiconductors, which supply and manage electricity, is dramatically increasing throughout automotive and industrial applications, spurred by the growth of electric vehicles (EVs) and renewable energy. Renesas is moving quickly to address the growing demand for power semiconductors by expanding its in-house manufacturing capacity. The company recently announced the restart of its Kofu Factory to produce IGBTs, and establishment of a silicon carbide production line at its Takasaki Factory.
Compared to conventional silicon power semiconductors, silicon carbide devices enable higher energy efficiency, greater power density and a lower system cost. In an increasingly energy-conscious world, the adoption of silicon carbide is becoming ever more pervasive across multiple high-volume applications spanning EVs, renewable energy and storage, charging infrastructure, industrial power supplies, traction and variable speed drives.
“The wafer supply agreement with Wolfspeed will provide Renesas with a stable, long-term supply base of high-quality silicon carbide wafers. This empowers Renesas to scale our power semiconductor offerings to better serve customers’ vast array of applications,” said Hidetoshi Shibata, President and CEO of Renesas. “We are now poised to elevate ourselves as a key player in the accelerating silicon carbide market.”
“With the steepening demand for silicon carbide across the automotive, industrial and energy sectors, it’s critically important we have best-in-class power semiconductor customers like Renesas to help lead the global transition from silicon to silicon carbide,” said Gregg Lowe, President and CEO of Wolfspeed. “For more than 35 years, Wolfspeed has focused on producing silicon carbide wafers and high-quality power devices, and this relationship marks an important step in our mission to save the world energy.”
The Renesas $2 billion deposit will help support Wolfspeed’s ongoing capacity construction projects including the JP, the world’s largest silicon carbide materials factory in Chatham County, North Carolina. The state-of-the-art, multi-billion-dollar facility is targeted to generate a more than 10-fold increase from Wolfspeed’s current silicon carbide production capacity on its Durham, North Carolina campus. The facility will produce primarily 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, translating into more chips per wafer and ultimately, lower device costs.
Original – Renesas Electronics
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Wolfspeed, Inc. announced a $1.25 billion secured note financing from an investment group led by Apollo, with an accordion feature for up to an additional $750 million.
The financing supports the company’s previously announced U.S. expansion efforts and is a significant step toward achieving the company’s $6.5 billion global capacity expansion plan. Execution of Wolfspeed’s U.S. growth plan will accelerate adoption of silicon carbide across a wide array of end markets and support meaningful job creation in US semiconductor manufacturing.
The 9.875% notes will mature in 2030 and are optionally prepayable by the company based on the terms of the indenture governing the notes. The investment was led by funds managed by Apollo’s ~$450 billion Credit business.
“The group’s commitment to Wolfspeed further validates the importance of silicon carbide to the global energy transition,” said Gregg Lowe, president and chief executive officer of Wolfspeed. “This important step in our financing provides significant capital to scale up near-term operations at our Mohawk Valley Fab and construction of our Siler City materials facility to help us capture the growing silicon carbide market opportunity. The financing positions Wolfspeed to continue to lead the growth of the industry and focus on the execution of our vertically integrated strategy to meet growing demand.”
“Our agreement with Apollo and its capital partners achieves our near-term funding targets while prioritizing our shareholders with a new, non-dilutive source of financing,” said Neill Reynolds, chief financial officer of Wolfspeed. “Apollo and its capital partners’ investment follows an extensive review of our business and demonstrates their conviction in our team, operating plan and trajectory.”
“Apollo is pleased to provide a dynamic and flexible credit solution to Wolfspeed as it significantly expands its silicon carbide manufacturing capacity. The company’s growth plan is designed to deliver critical silicon carbide products for a range of automotive and industrial uses, and support sustainability goals with market-leading technology,” said Joseph Jackson, Partner, Apollo Credit. “With the help of our capital partners, we have crafted a facility that can provide up to $2 billion to ramp the company’s expansion plans.”
Wells Fargo & Company (NYSE: WFC) and Morgan Stanley & Co. LLC served as financial advisors to Wolfspeed and Latham & Watkins LLP and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. served as legal counsel to Wolfspeed. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to the Apollo funds and the noteholder group. Apollo Capital Solutions provided capital markets and structuring advisory services on the transaction.
Original – Wolfspeed
