Wolfspeed secured a contract to supply its automotive silicon carbide MOSFETs for Toyota’s battery‑electric‑vehicle onboard charger systems, a key component that converts AC grid power into the DC power needed to charge EV batteries. The deal underscores Toyota’s confidence in Wolfspeed’s U.S.‑based supply chain and manufacturing footprint, which the automaker cites as critical for reliability and continuity.
The contract comes as Wolfspeed continues to navigate a challenging financial environment. In the first quarter of fiscal 2025, the company reported revenue of $195 million, down 4 % from $205 million a year earlier, and a non‑GAAP gross margin of 3.4 %, a sharp decline from 16 % in the prior year. The decline was driven by underutilization costs at the Mohawk Valley fabrication plant and a broader slowdown in industrial and energy markets.
Despite the margin squeeze, Wolfspeed’s automotive segment grew 2.5 × year‑over‑year in Q1 FY25, reflecting strong demand for high‑performance silicon carbide in electric‑vehicle power electronics. The company’s Q2 FY25 revenue of $181 million, a 13 % year‑over‑year decline, was supported by a 2 % increase in power‑device sales, while materials revenue fell 5 % to $90 million.
Management highlighted the Toyota partnership as a milestone that could accelerate the company’s transition to 200‑mm SiC manufacturing. “Toyota is known for its uncompromising approach to quality and reliability, and we’re honored to be supporting their next wave of electrification,” said Wolfspeed CEO Robert Feurle. “Our work with Toyota is built upon years of trust in engineering expertise, supply reliability, and a shared obsession with quality.”
Wolfspeed’s chief executive, Gregg Lowe, noted that the company is at a “critical inflection point” and is focused on solidifying its capital structure while expanding its 200‑mm footprint to target annual revenue of approximately $3 billion. The Toyota contract is expected to contribute to that revenue target by adding a new, high‑margin customer base in the automotive sector.
The company guided for fiscal 2025 revenue of $170 million to $200 million for the next quarter, a range that reflects confidence in continued demand for silicon carbide in EV power electronics, even as it manages cost pressures from raw‑material inflation and capacity constraints.
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