Wolfspeed, Inc. (NYSE:WOLF) Q4 2023 Earnings Call Transcript

Neill Reynolds: Yes. So from an investment perspective, we’ve talked about $2 billion of CapEx this year, let’s say, the vast majority of that is related to the build-out at JP. We also have some tools we’re putting into Mohawk Valley. We have some materials expansion and back-end semiconductor equipment putting in. So I think the vast majority of that would be done here in 2024, which then indicates that to get into 2025, we should be able to start ramping that facility. As you think about the kind of fixed costs or start-up costs, we talked about $8 million related to that this quarter, should double by the end of the fiscal year to about [$15 million] (ph) in Q4 and then you should see some additional increases in ’25. But if you bring that on to capacity levels, similar to what we just saw in Mohawk Valley that will transition to cost of sales and just be part of our cost of sales moving forward as we transition that factory to production in 2025.

Natalia Winkler: Understood. Thank you. And then for my follow-up, I wanted to ask on the RF business. Could you guys provide some sort of color what you’re seeing there and maybe what your expectations are for the next few quarters?

Neill Reynolds: Yes. So from RF perspective, I think the overall kind of environment has been somewhat weak in line with our expectations. We see that kind of flattish year for the first half of the fiscal year with maybe a modest pickup in the back half of the year.

Natalia Winkler: Understood. Thank you.

Operator: I’d now like to turn the call back over to Mr. Lowe for some final thoughts.

Gregg Lowe: Just a couple of final thoughts before we wrap up. We are producing high-quality 200-millimeter substrate that the Durham campus that are yielding well. [indiscernible] Mohawk Valley, which is open for business, generating revenue and beginning to scale. Construction at the JP, our new 200-millimeter materials factory, is underway and will pave the way for a substantial increase in supply as demand continues to grow at unprecedented levels. And that is demonstrated by the $8.3 billion of design-ins that we were awarded in fiscal 2023. Finally, we secured $5 billion of funding in the last nine months to ensure we are well positioned to support this multi-decade growth opportunity. We appreciate your continued support, and look forward to speaking with you next quarter.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.