−Removed: (Cree, we, our, or us) is an innovator of wide bandgap semiconductors, focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications.
−Removed: Our silicon carbide and GaN materials and devices are targeted for applications such as transportation, power supplies, inverters and wireless systems.
+Added: Wolfspeed, Inc.
+Added: (Wolfspeed, we, our, or us) formerly known as Cree, Inc., is an innovator of wide bandgap semiconductors, focused on Silicon Carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications.
+Added: Our product families include Silicon Carbide and GaN materials, power devices and RF devices, and our products are targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense.
During and prior to fiscal 2021, we designed, manufactured and sold specialty lighting-class light emitting diode (LED) products targeted for use in indoor and outdoor lighting, electronic signs and signals and video displays.
On March 1, 2021, we completed the sale of certain assets and subsidiaries comprising our former LED Products segment (the LED Business) to SMART Global Holdings, Inc.
−Removed: (SGH) and its wholly owned newly-created acquisition subsidiary CreeLED, Inc.
−Removed: (CreeLED and collectively with SGH, SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration (the LED Business Divestiture).
−Removed: We retained certain assets used in and pre-closing liabilities associated with the LED Products segment.
−Removed: In addition, we previously designed, manufactured and sold LED lighting fixtures and lamps for the commercial, industrial and consumer markets.
−Removed: We referred to these product lines as the Lighting Products business unit.
−Removed: On May 13, 2019, we sold our Lighting Products business unit to IDEAL Industries, Inc.
−Removed: The Lighting Products business unit represented the Lighting Products segment disclosed in our historical financial statements.
−Removed: As a result, we have classified the results and cash flows of our former LED Products segment and our former Lighting Products business unit as discontinued operations in our consolidated statements of operations and consolidated statements of cash flows for all periods presented.
−Removed: Additionally, the related assets and liabilities associated with the discontinued operations of the former LED Products segment are classified as held for sale as of June 28, 2020 in the consolidated balance sheets.
+Added: (SGH) and its wholly owned subsidiary CreeLED, Inc.
+Added: (CreeLED and collectively with SGH, SMART) (the LED Business Divestiture).
+Added: As a result, we have classified the results and cash flows of our former LED Products segment as discontinued operations in our consolidated statements of operations and consolidated statements of cash flows for all periods presented.
Unless otherwise noted, discussions within this Annual Report relate to our continuing operations.
−Removed: Our continuing operations consist of our Wolfspeed business, which includes silicon carbide and GaN materials, power devices and RF devices based on wide bandgap semiconductor materials and silicon.
Our materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications.
Our materials products and RF devices are used in military communications, radar, satellite and telecommunication applications.
−Removed: In January 2021, we announced plans to change our corporate name from Cree, Inc.
+Added: On October 4, 2021, we changed our corporate name from Cree, Inc.
to Wolfspeed, Inc.
−Removed: in the later part of this calendar year.
+Added: In addition, we transferred the listing of our common stock to the New York Stock Exchange (NYSE) from The Nasdaq Global Select Market (Nasdaq).
+Added: We ceased trading as a Nasdaq-listed company at the end of the day on October 1, 2021 and commenced trading as a NYSE-listed company at market open on October 4, 2021 under the new ticker symbol ‘WOLF’.
The majority of our products are manufactured at our production facilities located in North Carolina, California and Arkansas.
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We maintain captive lines at some of our contract manufacturers.
−Removed: Additionally, we are in the process of building a silicon carbide device fabrication facility in New York.
+Added: Additionally, we recently opened a Silicon Carbide device fabrication facility in New York.
We operate research and development facilities in North Carolina, California, Arkansas, Arizona and New York.
+Added: Wolfspeed, Inc.
is a North Carolina corporation established in 1987, and our headquarters are in Durham, North Carolina.
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Power Devices
−Removed: Our power device products consist of silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), power modules and gate driver boards.
−Removed: Our silicon carbide power products provide increased efficiency and faster switching speeds and as a result, reduced system size and weight over comparable silicon-based power devices.
+Added: Our power device products consist of Silicon Carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs) and power modules.
+Added: Our Silicon Carbide power products provide increased efficiency and faster switching speeds and as a result, reduced system size and weight over comparable silicon power devices.
Power products are sold to customers and distributors for use in applications such as electric vehicles, including charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies and other applications.
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• develop Silicon Carbide materials and fabrication technology for a 200mm platform;
−Removed: • develop higher performance power diodes, switches and packages, and higher power/linearity RF devices;
+Added: • develop higher performance power and RF devices;
• increase the quality, performance and diameter of our substrate and epitaxial materials;
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Our sales, marketing and technical applications teams include personnel throughout North America, Asia and Europe.
−Removed: We have a small number of customers who represent more than 10% of our consolidated revenue.
−Removed: ST Microelectronics, Inc.
−Removed: (ST Microelectronics) accounted for 18%, 19% and 11% of our total consolidated revenue from continuing operations in fiscal 2021, 2020 and 2019, respectively.
−Removed: Sumitomo Corporation (Sumitomo) accounted for 10%, 14% and 14% of our total consolidated revenue from continuing operations in fiscal 2021, 2020 and 2019, respectively.
−Removed: Additionally, Arrow Electronics, Inc.
−Removed: accounted for 13% and 14% of our total consolidated revenue from continuing operations in fiscal 2021 and 2019, respectively.
+Added: In fiscal 2022, 2021 and 2020, we had two, three, and two customers that represented more than 10% of our consolidated revenue, respectively.
+Added: These customers, in the aggregate, accounted for 38%, 41%, and 33% of our total consolidated revenue in fiscal 2022, 2021 and 2020, respectively.
For further discussion regarding customer concentration, please see Note 16, “Concentrations of Risk,” in our consolidated financial statements included in Item 8 of this Annual Report.
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instead, their customers place orders directly with us or through distributors.
−Removed: Our backlog at June 27, 2021 was approximately $763.9 million, compared with a backlog of approximately $602.7 million at June 28, 2020.
−Removed: Because of changes in a number of factors, including manufacturing lead times and customer order patterns, we do not believe that our backlog, as of any particular date, is necessarily indicative of actual net revenue for any future period.
+Added: Our backlog at June 26, 2022 was approximately $2.2 billion, compared with a backlog of approximately $763.9 million at June 27, 2021.
+Added: Because of changes in a number of factors, including manufacturing lead times and customer order patterns, we do not believe that our backlog, as of any particular date, is necessarily indicative of actual revenue for any future period.
Significant amounts of our backlog relate to agreements that extend past one year.
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However, shortages have occurred from time to time and could occur again.
−Removed: We are currently experiencing isolated issues with our suppliers related to the COVID-19 pandemic.
−Removed: Most of these issues have related to extensions of lead times or work force restrictions imposed at a regional level.
−Removed: We closely monitor deliveries with suppliers to help us have the opportunity to decrease or eliminate any future delays.
For raw materials used in semiconductor production, the global semiconductor shortage has put pressure on the ability to obtain some raw materials.
−Removed: We have focused on forecasting demand further out in time in order to secure raw materials that may have extended lead times.
−Removed: Additionally, we are continuing to experience impacts with logistics, including backed up ports and cargo shipment and airline shipment delays.
+Added: We have focused on forecasting demand further out in time in order to secure raw materials that may have extended lead times and we have been working with suppliers to develop purchase agreements that provide supply over extended time periods.
+Added: We are starting to experience higher prices on our raw materials as a result of inflation pressures, including base price increases and price surcharges.
+Added: Additionally, we have continued to experience impacts with logistics, including increased freight costs and lower shipping capacities.
We are closely following logistical impacts as they happen and are working closely with suppliers to prepare shipping arrangements in advance of departure dates to ensure we secure logistics slots.
+Added: We have and may continue to experience isolated issues with our suppliers related to the COVID-19 pandemic.
+Added: These issues usually relate to extensions of lead times or impacts due to work force restrictions imposed at a regional level.
+Added: When these occur, we closely monitor deliveries with suppliers to help us have the opportunity to decrease or eliminate any future delays.
We have been successful in managing through these issues and we believe our operations are currently not materially impacted by our ability to source raw materials, components and equipment used in manufacturing our products.
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We have continued to maintain a well-established leadership position in the sale of Silicon Carbide wafer and Silicon Carbide and GaN epitaxy products.
−Removed: As market adoption of the technology grows with rapidly expanding power and RF device designs, we have experienced increased competition from companies such as II-VI Advanced Materials, SiCrystal GmbH, IQE plc and Showa Denko K.K.
+Added: As market adoption of the technology grows with rapidly expanding power and RF device designs, we have experienced increased competition from companies such as II-VI Advanced Materials/Coherent, Inc., SiCrystal GmbH, IQE plc and Showa Denko K.K.
We believe our leading technology and leveraged production scale position us to reliably supply production volumes to the device manufacturers in the market.
Power Devices
−Removed: Our silicon carbide based power devices compete with silicon carbide power semiconductor solutions offered by Infineon Technologies AG, Mitsubishi Electric Corporation (Mitsubishi), ON Semiconductor Corporation, Rohm Co.
−Removed: Ltd., and ST Microelectronics.
+Added: Our Silicon Carbide power devices compete with Silicon Carbide power semiconductor solutions offered by Infineon Technologies AG, ON Semiconductor Corporation, Rohm Co.
+Added: Ltd., and ST Microelectronics, as well as an increasing number of smaller competitors.
Our Silicon Carbide products also compete with silicon semiconductor devices offered by a variety of manufacturers.
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We, along with the rest of the semiconductor industry, are subject to variable interpretations and governmental priorities concerning environmental laws and regulations.
−Removed: We endorse and adhere to Environment, Health and Safety (EH&S) standards for all our sites.
−Removed: It is our EH&S goal to design and develop products safely, that realize energy efficiency, minimize environmental impacts, and have sustainable life cycles.
−Removed: In this manner, we are striving to continuously improve our EH&S performance and reduce the overall impacts of our manufacturing processes.
+Added: We endorse and adhere to Environment, Health and Safety (EHS) standards for all our sites.
+Added: It is our EHS goal to design and develop products safely, that realize energy efficiency, minimize environmental impacts, and have sustainable life cycles.
+Added: In this manner, we are striving to continuously improve our EHS performance and reduce the overall impacts of our manufacturing processes.
To further ensure that we can implement such standards, we are dedicated to:
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• consulting with and encouraging the participation of workers and workers’ representatives, as applicable.
−Removed: Our EH&S management systems in our manufacturing facilities in Durham and Research Triangle Park, North Carolina and Morgan Hill, California are certified to ISO 14001:2015 for environmental management.
−Removed: The benefits of implementing an environmental management system include improved environmental risk management, cost savings, meeting external stakeholder expectations, ensuring compliance with environmental laws, and decreasing our environmental footprint through discovering new possibilities for energy, water and waste usage reductions.
+Added: Our EHS management systems in our manufacturing facilities in Durham and Research Triangle Park, North Carolina and Morgan Hill, California are certified to ISO 14001:2015 for environmental management.
+Added: The benefits of implementing environmental and safety management systems include improved risk management, cost savings, meeting external stakeholder expectations, ensuring compliance with environmental and occupational safety laws, and decreasing our environmental footprint through discovering new possibilities for energy, water and waste usage reductions.
We are also subject to import-export controls, tariffs and other trade-related regulations and restrictions in countries in which we have operations or otherwise do business.
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We also have initiatives in place to reduce our global employee turnover rates, which are monitored and reviewed quarterly.
−Removed: Our goal is to ensure employees can find development and career growth without having to leave Cree.
+Added: Our goal is to ensure employees can find development and career growth without having to leave Wolfspeed.
Compensation and Benefits
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In response to the COVID-19 pandemic, we implemented safety protocols and new procedures to protect our employees, customers and suppliers.
−Removed: In line with guidance from the World Health Organization, local health authorities and other governmental authorities, we have implemented numerous preventative hygiene and safety measures at our facilities.
+Added: In line with guidance from the World Health Organization, Center for Disease Control, local health authorities and other governmental authorities, we have implemented numerous preventative hygiene and safety measures at our facilities, and moved to a fully remote work model for employees who were able to perform their job duties from an off-campus location.
As the pandemic continues, the health and well-being of our workforce remains a top priority while we work to ensure productivity for those employees working from home.
−Removed: When we begin a transition to return to the office, we are planning to offer a 'work where it works' arrangement that allows employees to continue to have the option of working remotely.
+Added: Recently, some employees have returned to working in the office, however, we also offer a 'work where it works' arrangement that allows certain employees to continue to have the option of working remotely part-time or full-time.
Diversity and Inclusion
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We celebrate our employees’ differences and authenticity, and understand that diverse ideas, perspectives, thinking styles, and backgrounds produce higher quality decisions, enabling us to solve problems other companies consider to be impossible.
−Removed: Our efforts to foster a diverse and inclusive workplace include Employee Resources Groups (“ERGs”), a Diversity, Equity and Inclusion leadership team that partners with our Human Resources department and various scholarship programs in our surrounding communities.
+Added: Our efforts to foster a diverse and inclusive workplace include Employee Resources Groups, a Diversity, Equity and Inclusion leadership team that partners with our Human Resources department and various scholarship programs in our surrounding communities.
We believe these initiatives help contribute to the development of future leaders, increased employee engagement and expanded market reach.
Available Information
−Removed: Our website address is www.cree.com and our investor relations website is located at https://investor.cree.com.
−Removed: Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, statements of changes in beneficial ownership and amendments to those reports are available for free on our investor relations website as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC.
+Added: Our website address is www.wolfspeed.com and our investor relations website is located at https://investor.wolfspeed.com.
+Added: Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, statements of changes in beneficial ownership and amendments to those reports are available for free on our investor relations website as soon as reasonably practicable after these are electronically filed with, or furnished to, the SEC.
The contents of our website, including our investor relations website, is not incorporated by reference into this filing or any other report we file with or furnish to the SEC.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.