Wolfspeed, Inc.

Good afternoon. Thank you for attending today's Wolf Speed Inc. Q2 fiscal year 2024 earnings call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to Tyler Groenbach, VP of External Affairs. You may proceed.

Thank you, operator, and good afternoon, everyone. Welcome to Wolfspeed's second quarter fiscal 2024 conference call. Today, Wolfspeed CEO Greg Lowe and Wolfspeed CFO Neil Reynolds will report on the results for the second quarter of fiscal year 2024. 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 mention important factors that could cause actual results to differ materially. Lastly, I would also like to note that this quarter we completed the sale of our RF business to MACOM. The results of our RF business are classified as discontinued operations, and all discussions today will be on a continuing operations basis. During the Q&A session, we would ask that you limit yourself to one question 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'd like to turn the call over to Greg.

Thanks, Tyler, and good afternoon, everyone. As the world's only pure play vertically integrated silicon carbide company, Wolfspeed is leading the industry shift from silicon to silicon carbide across both materials and devices. Our focus remains on scaling operations effectively and executing on the long-term investment plan that we have in place. While there are still challenges ahead of us, We are proud of the strong progress we've made on our strategic initiatives over the past couple of quarters. Importantly, we're encouraged by the developments across key internal metrics. The Mohawk Valley FAB delivered improved performance and is on track to achieve 20% utilization in the June quarter. From a 200-millimeter substrate perspective, there is now ample runway to not only meet but exceed our original utilization target from building 10 on the Durham campus as we're consistently producing high quality, high yielding 200 millimeter wafers out of this facility. The additional flexibility will be important as we begin producing substrates in the latter half of this year at the JP. Overall, I'm confident about our execution of our near term operational goals and optimistic around our long-term financial prospects. Showing our unwavering focus on execution, the second quarter continued the solid momentum from the first quarter. We've said time and time again that all roads lead to Mohawk Valley, and this past quarter was no exception. The FAB contributed approximately $12 million to our quarterly revenue, roughly triple last quarter's levels and at the midpoint of our guidance. I spent a lot of time at Mohawk Valley this past quarter and witnessed the dedication of our team firsthand, who along with our incredible tool suppliers are working around the clock on tool optimization activities related to this first of its kind grant. Wolfspeed at its core is an innovative company full of problem solvers. And I'm very grateful to the entire team that we are heads down and focused on execution at the staff. To give you a sense for the progress at Mohawk Valley, so far we've qualified over a dozen customer parts, including two of our most complicated automotive devices, as well as the largest device we are currently producing at the facility. This gives us more than enough qualified parts to achieve our 20% utilization goal and we expect to continue to qualify more parts between now and the end of June, further supporting the Mohawk Valley revenue ramp. Additionally, we received our IATF automotive certification at Mohawk Valley, which is an industry standard to ship to OEMs and Tier 1s. This is an important milestone, and we are pleased to have achieved it on our first attempt. On the materials side of our operations, At Building 10, we've now installed all crystal growers necessary to achieve 20% utilization at the Mohawk Valley Fab by June of 2024. Wafers out of Building 10 are yielding very well, and we now have plenty of 200-millimeter capacity to achieve our 20% utilization target. In fact, the quality of the material and the current yields give us confidence that Building 10 will be able to support approximately 25% wafer start utilization at Mohawk Valley by the end of calendar 2024, well above our original expectations. However, we'd still like to remind everyone that the ramp cadence at Mohawk Valley has not changed based on this development. And to be clear, the normal challenges of ramping a brand new 200 millimeter fab remain, and we are well aware that this ramp will not be linear. While we're pleased with the fab performance, our Mohawk Valley team continues to work on optimizing factory tool utilization and availability. It's important to remember that this is the first time these tools have processed 200-millimeter silicon carbide wafers, and tool integration is a critical step as we ramp production. Lastly, as it relates to our materials facility, At the JP in Schuyler City, we will begin installing crystal growers in early February and would expect to begin qualifying furnaces in the September quarter of this year. All the learnings with 200 millimeter crystal growth at Building 10 will better position us to hit the ground running in Schuyler City, and we anticipate bull production starting by the end of calendar 2024. And finally, before I hand the call over to Neil, I'd like to share a few observations about the internal combustion engine to electric vehicle transition. The shift, of course, is well underway, but it's happening at a more modest pace than some had previously anticipated. This really has no impact on our business outlook, as we were still very early in the adoption phase of our silicon carbide devices across numerous car models that are being introduced to the market in the next few years. Underscoring this is our strong design-ins and design-win performance this quarter. As a reminder, a design-in represents business we've been awarded. And the conversion to design-win happens when the customer places production orders for 20% of the first year production volume. In other words, the design-win indicates that the customer is beginning to ramp their production with our devices. We achieved $2.1 billion in design ends this quarter, marking our third highest quarter on record, which clearly indicates continuing and growing robust demand for silicon carbides. More importantly, we posted a record of $2.9 billion of design wins, which were heavily weighted towards EVs, and included 28 different electric vehicle models. This diverse customer base across the global electric vehicle industry with multiple OEMs and Tier 1s gives us confidence to continue with our expansion plans and further illustrates why we believe our supply will be continuing to work to catch up with demand over the next few years. And these design wins are just the beginning. Over the next five years, based on our current design ends, the number of EVs leveraging wool speed devices will increase to nearly 120 different models across 30 different OEMs. This represents a significant growth from the small number of vehicles on the road using our silicon carbide devices today and demonstrates the opportunity ahead for us. As we continue to pioneer 200 millimeter silicon carbide and embark on our unprecedented greenfield capacity expansion plans. We maintain conviction in our strategy. It is exciting to see what is on the horizon, and we look forward to continuing this promising momentum, particularly at Mohawk Valley, throughout the second half of this fiscal year and beyond. I'll now turn it over to Neil, who will provide an overview of our financial results and our outlook.