Microwave Journal
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Wolfspeed Achieves Record Q2 Revenue

January 31, 2019

Wolfspeed, the strategic growth engine for Cree, set a quarterly revenue record in fiscal Q2, presaging the growth of electric vehicles (EV) and adoption of SiC as the preferred technology for the power electronics in the EV.

Wolfspeed’s Q2 revenue was $135.3 million, up 92 percent from the prior year’s quarter and up 6 percent sequentially. Wolfspeed's gross margin was 47.8 percent, up from 47.4 percent in Q1.

Wolfspeed quarterly revenue
Wolfspeed's quarterly revenue.

The large year-over-year revenue growth reflects the addition of Infineon’s RF power business, which Cree acquired in March 2018. Gregg Lowe, Cree CEO. said Wolfspeed’s organic growth was “more than 50 percent,” equating to organic revenue of at least $106 million and Infineon RF power revenue of $30 million or less.

To meet the increasing demand for SiC wafers and devices, Cree has doubled substrate and wafer fab capacity and will double capacity again by the fall of 2020. During fiscal 2019, Cree plans $220 million for capital expenditures, most for Wolfspeed.

Where’s RF GaN?

With SiC the poster child for Wolfspeed’s growth, the RF business doesn’t get much air time during the earnings calls. Nonetheless, Lowe said the wireless market is moving toward GaN for “faster 4G and the transition to 5G.” He said Wolfspeed is also adding GaN capacity to meet increasing demand.

Cree does not break out Wolfspeed’s revenue to show the contribution from RF.

Wolfspeed quarterly GAAP gross margin
Wolfspeed's quarterly gross margin (per GAAP).