Wolfspeed Sells RF Business to Focus on Semiconductor and Power Industries

Durham's Wolfspeed, a company specializing in semiconductor and power businesses, is selling its radio frequency (RF) business to concentrate on electric vehicles and other related ventures.

Why It Matters: This move allows Wolfspeed to focus its resources on its core areas of expertise, namely semiconductors, and power, and align with the growing demand for electric vehicles. The sale of the RF business will also provide an opportunity for Macom Technology Solutions to expand its market presence.

The Details:

• Wolfspeed is selling its RF business to Macom Technology Solutions for a total deal value of $75 million in cash and $50 million in shares.

• Macom is a global company that designs and manufactures semiconductor products for various industries, including telecommunications, defense, and data centers.

• Wolfspeed's President and CEO, Gregg Lowe, stated that the sale will allow the company to focus on scaling its power device and materials businesses to meet the increasing demand in automotive, industrial, and renewable energy markets.

• The deal is expected to be finalized before the end of the year, and the impact on jobs at Wolfspeed has not been clarified.

• Wolfspeed has ongoing semiconductor projects in Durham, New York, and new plants in Chatham County, Germany, and is investing billions in these ventures.

Conclusion: Wolfspeed's decision to sell its RF business demonstrates the company's strategic focus on the semiconductor and power industries, particularly in relation to the growing demand for electric vehicles. This move will allow Wolfspeed to allocate its resources effectively while providing an opportunity for Macom Technology Solutions to expand its market presence.