Wolfspeed CEO Gregg Lowe Steps Down Amid EV Market Challenges
On November 18, global silicon carbide leader Wolfspeed announced that CEO Gregg Lowe has been removed from his position due to increasing challenges associated with the slowing demand in the electric vehicle (EV) sector. The announcement led to a roughly 6% rise in the company's stock price. Lowe, who also held the title of President, will step down from all roles, including his position on the board of directors, by the end of the month. To ensure smooth business continuity, current chairman Thomas Werner will temporarily take on the role of Executive Chairman until a suitable replacement for the CEO is appointed.
On November 18, global silicon carbide leader Wolfspeed announced that CEO Gregg Lowe has been removed from his position due to increasing challenges associated with the slowing demand in the electric vehicle (EV) sector. The announcement led to a roughly 6% rise in the company's stock price. Lowe, who also held the title of President, will step down from all roles, including his position on the board of directors, by the end of the month. To ensure smooth business continuity, current chairman Thomas Werner will temporarily take on the role of Executive Chairman until a suitable replacement for the CEO is appointed.
Werner stated his commitment to driving the company's long-term value creation and focusing on key priorities. These include executing milestones under the CHIPS PMT agreement, completing a restructuring plan to lower the break-even point, and achieving continuous sales growth. Werner also emphasized that Wolfspeed's strategic value has been significantly underestimated and expressed his intent to explore opportunities to unlock that value. He conveyed gratitude for Lowe's contributions to the company and highlighted the dedication to expanding Wolfspeed's leadership in silicon carbide technology, while seizing structural, long-term opportunities within the semiconductor industry.
Earlier this month, Wolfspeed had forecast quarterly revenue below Wall Street expectations and indicated it would record $174 million in restructuring costs related to the planned closure of a factory. Despite a potential $2.4 billion funding injection under the U.K. Chips Act, the company's transition to producing 200 mm silicon carbide wafers and related equipment has faced significant hurdles.
