Wolfspeed, Inc.

Thank you for joining the Wolf Speed Q4 fiscal 2023 results call. I'd now like to turn the call over to Tyler Groenbach, VP of External Affairs with Wolf Speed.

Thank you, operator, and good afternoon, everyone. Welcome to Wolf Speed's fourth quarter fiscal 2023 conference call. Today, Wolf Speed CEO, Greg Lowe, and Wolf Speed CFO, Neil Reynolds, will report on the results for the fourth quarter and full year of fiscal year 2023. Please note that we will be presenting non-GAAP financial results during today's call, which we believe provides useful information to our investors. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to and not a substitute for financial statements prepared in accordance with GAAP. A reconciliation to the most directly comparable GAAP measures is in our press release and posted in the investor relations section of our website, along with a historical summary of other key metrics. Today's discussion includes forward-looking statements about our business outlook, and we may make other forward-looking statements during the call. Such forward-looking statements are subject to numerous risks and uncertainties. Our press release today and the SEC filings noted in the release mentioned important factors that could cause actual results to differ materially. During the Q&A session, we would ask that you limit yourself to one question and one follow-up so that we can accommodate as many questions as possible during today's call. If you have any additional questions, please feel free to contact us after the call. And now I'll turn the call over to Greg.

Thanks, Tyler, and good afternoon, everyone. As we close out fiscal 2023, we look back having made significant strides across all areas of our business. Our Mohawk Valley fab, which is the world's largest fully automated 200 millimeter silicon carbide fab, began shipping product and contributing revenue. Last October, we outlined our plans to construct the world's largest state-of-the-art greenfield silicon carbide footprint. Since then, We've secured $5 billion of the capital necessary to achieve these goals, allowing us to finish out the fit-out of Mohawk Valley, expand our materials capacity at Durham, and break ground on the world's largest 200-millimeter silicon carbide materials facility, the JP, in Siler City, North Carolina. Finally, we have made great strides in diversifying our device customer base across the automotive, industrial, and energy sectors, with flagship agreements with key OEMs and Tier 1s, including Jaguar Land Rover, Mercedes, Ford Warner, and ZF. We are also continuing to see growth in the traditional industrial and energy segments as customers make the transition to silicon carbide. We are seeing many opportunities in solar and energy systems, motor drives, UPS, heat pumps, air conditioning, and many more. The growth in these segments is primarily driven by the need for higher energy efficiency. In addition, emerging industrial applications such as e-mobility, electric vertical takeoff and landing aircraft are also integrating wool speed silicon carbide within their initial designs to reduce system weight and improve range. From a materials perspective, we were very pleased to secure a long-term wafer supply agreement with Renesas Electronics Corporation. Widely recognized as a leader in automotive semiconductor devices, Renesas also understands the importance of having access to silicon carbide technology and have signed a 10-year wafer supply agreement with Wolfspeed. The agreement includes a $2 billion customer deposit which is one of the largest deposits I have ever seen in my 30 plus years in semiconductors. This will secure a capacity corridor as they began to ramp silicon carbide device production beginning in 2025. While this agreement is also expected to provide a significant revenue stream over the next decade, it has an even greater significance for the power semiconductor landscape. Securing this key customer was possible because of our forward-thinking investments in material capacity at the Durham campus and with the construction of the JP. We will be uniquely positioned to drive the industry transition from 150 millimeter to 200 millimeter silicon carbide wafers, which will help address some of the supply-demand mismatch which currently exists today and potentially open up new markets for silicon carbide applications in the industrial and energy sectors. From a materials perspective, construction at the JPE is well underway. Fully built out, the JPE will add 10 times more capacity compared to our current operations in Durham, significantly increasing the world's total supply of silicon carbide materials. The building foundation is in place, and we've now started construction on the shell of the building. We remain on track to begin producing wafers at the site in the second half of calendar 2024. As far as our more immediate strategy to increase 200 millimeter materials production at building 10 on our Durham campus, we have now installed more than 75% of the crystal growers in that facility. They are currently growing crystals, and we've been very pleased with the yields thus far. As it relates to Mohawk Valley and our device business, We have continued our ramp up efforts and recorded approximately $1 million in device revenue out of the fab in fiscal Q4. Silicon carbide is a complex technology that's very difficult to master. And I'm proud of how our team has worked tirelessly to get us ramping device production in a brand new highly automated fab. We still have some work to do at Mohawk Valley as we scale device production. and expect a modest increase in device revenues in the first half of fiscal 2024 with a steeper increase in revenue beginning the second half of 2024. From a device perspective, we are seeing continued strength across our end markets, and we secured approximately $1.6 billion in design-ins for fiscal Q4. For fiscal 2023, design-ins totaled approximately $8.3 billion. And the cumulative total now stands in excess of $19 billion secured in the last four years. Our customer wins to date give us the competence and the growth of our addressable market and our ability to capture meaningful share of the device market between now and the end of the decade. More than anything, we're proud of our role in building greater awareness for silicon carbide. At the same time, the world is realizing the importance of the global semiconductor industry. The secular trends that are driving the adoption of silicon carbide have started to receive widespread public recognition as a truly game-changing technology in the power semiconductor space. I'll now turn it over to Neil, who will provide an overview of our financial results and outlook. Neil?