Macom buys Wolfspeed’s RF business

Author: EIS Release Date: Sep 5, 2023

Macom has bought Wolfspeed’s RF business for $75 million in cash, and $50 million in Macom stock.

 

Wolfspeed  will keep its SiC substrate and GaN epitaxial services businesses, and sell its RF, product lines including LDMOS for 5G below 2.5GHz.

 

The products are complementary, points out TechInsights, in that Wolfspeed  focuses on 0.45 micron to 0.15 micron 50-55V devices while Macom focusses on 0.14 micron GaN-on-Si InP lasers and GaN-on-Sic GaAs pHEMTs and MHEMTs.

 

The RF team’s engineering capabilities, technology and products are a perfect fit with MACOM and our strategy,” says Macom CEO Stephen Daly.

 

 

 

Macom will take control of Wolfspeed’s 100mm GaN fab in Research Triangle Park, North Carolina approximately two years following the closing of the transaction. Wolfspeed will continue to supply SiC substrates and GaN epi services after the fab transfer date.

 

“Given the significant growth we’ve seen in automotive, industrial and renewable energy markets, we believe this is the right time to further focus on scaling our Power device and materials businesses to meet this accelerated demand,” says Wolfspeed CEO Gregg Lowe.

 

For its FY Q1 2024, Wolfspeed targets revenue from continuing operations in a range of $185 million to $205 million at loss of $138 million to $163 million.

 

Approximately 280 employees are expected to join Macom at closing, with additional employees joining when the RTP Fab conveys.