NuAxiSemiconductor trade intelligence
Wolfspeed raising $1.3bn in private offering
What happened
Wolfspeed is raising $1.3 billion via a private offering of convertible senior notes due 2029, with an option for an additional $200 million. This capital raise is primarily intended to fund the company's significant capacity expansion plans, including its new fab in North Carolina. Bearish: This dilutive financing signals ongoing high capital intensity and potential future share overhang, which could pressure the stock and reflects the costly nature of the SiC capacity race.
Impact and signal
Medium impactImpact score: 58/100
Affected components and suppliers
SiC WafersSiC Power DevicesGaN RF Devices
Wolfspeed Inc.
capital-raiseconvertible-notescapacity-funding
Source and time
Source: Semiconductor Today · 11/16/2022 · View original source
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