- In a report to investors about its earnings for the first quarter of 2025, the company announced a loss of $282.2 million in its first fiscal quarter.
A shakeup at Durham-based semiconductor chip maker Wolfspeed was announced Monday. Its president and chief executive officer will step down. Wolfspeed has received millions of dollars in taxpayer-paid grants in recent years but has seen losses in value and stock price along with a recent 20% reduction in its workforce.
In March, President Joe Biden kicked off his campaign’s “Investing in America Tour” with Gov. Roy Cooper for a speech and tour at Wolfspeed’s Durham facility.
“Wolfspeed (NYSE: WOLF) today announced that its Board of Directors (the “Board”) has determined and agreed with Gregg Lowe that he will depart this month from his roles as Wolfspeed’s President and Chief Executive Officer and as a member of the Board,” according to a press release issued on Monday. “The Board is conducting a search to identify a permanent CEO with the support of a leading global executive search firm.”
Lowe was named CEO in 2017.
The Board appointed Thomas Werner, Chairman of the Board, as Executive Chairman in the interim.
Werner, a member of the Board of Directors since March 2006, has been chairman since October 2023. The release said he would oversee the continued execution of Wolfspeed’s strategy in close alignment with Wolfspeed’s senior leadership team, the Board, and the Board’s operations and finance committees.
“On behalf of the full Board, I would like to thank Gregg for his service and dedication to Wolfspeed,” Werner said. “Since joining the Company as CEO in 2017, Gregg has spearheaded our transition into a leading, pure-play silicon carbide company well-positioned to capture the long-term opportunities ahead. The Board has always been focused on driving long-term value, and at this inflection point in Wolfspeed’s journey, the Board agreed that this is the right time for a leadership transition.”
He continued that Wolfspeed is firmly committed to its key strategic initiatives, including completing its restructuring initiatives to improve profitability and consistent sales growth.
“Wolfspeed is materially undervalued relative to its strategic value, and I will focus on driving the Company’s priorities and working with the Finance Committee of the Board to explore options to unlock value,” Werner added.
“Over the past seven years, we have transformed Wolfspeed into the only pure-play and vertically integrated silicon carbide operator in the country to capitalize on the structural and long-term demand for next generation semiconductor technology,” Lowe said. ‘While there is work still to be done, I have every confidence that Wolfspeed will execute on its strategic priorities and extend its silicon carbide leadership in the years to come.”
wolfspeed layoffs
Earlier this month, the company announced the layoffs. Its workforce was already reduced by 10% from attrition and voluntary early exits last quarter, with the remaining 10% coming from current layoff notices.
In its 2024 annual report, the company said it had 5,013 full and part-time employees.
The job reductions are part of the announcement in August that the 150mm production facility in Durham would close, as well as a facility in Farmers Branch, TX, and plans in Germany will be suspended indefinitely.
taxpayer-paid grants go to wolfspeed
Both announcements come a month after the Biden-Harris Administration announced that it had signed the initial agreement for up to $750 million in federal funding to support the construction of a new silicon carbide wafer manufacturing facility in Siler City under the CHIPS and Science Act.
Wolfspeed has also received infusions of North Carolina taxpayer money through the Job Development Investment Grant (JDIG) program. The $112.5 million is part of a JDIG grant allocated in the 2021 budget (2022 adjustments) for Wolfspeed. $57.5 million of that was allotted to reimburse Wolfspeed for site development, and another $55 million was allotted to the city of Asheboro for infrastructure.
In a report to investors about its earnings for the first quarter of 2025, the company announced a loss of $282.2 million in its first fiscal quarter.
The company’s stock price has reportedly dropped from more than $100 a share to less than $10 in the past two years.