WOLFSPEED INC
For the period ended Dec 29, 2024. Filed Jan 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 29, 2024 · Filed Jan 30, 2025
WOLF$23.79+16.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-29; filed 2024-11-07.
0000895419-24-000093
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-29; filed 2025-01-30.
0000895419-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 103 current paragraphs.
56 unchanged; 43 reworded; 4 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
•Operating loss was $553.1 million compared to $193.0 million.
Current report
The decrease in our materials products revenue for all periods is primarily driven by weakening demand across end markets.
Current report
•$31.4 million and $65.7 million, respectively, of costs in connection with the 2025 Restructuring Plan as discussed in Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Current report
In the second quarter of fiscal 2025, we filed a shelf registration statement on Form S-3 to register for possible future sale shares of our common stock. The registration statement became automatically effective upon filing with the SEC on December 9, 2024. Under this shelf registration statement, we implemented an at-the-market program (the ATM Program) as described in the prospectus supplement filed with the SEC on December 9, 2024. As discussed further in Note 14, "Shareholders' Equity", the ATM Program was conducted pursuant to an equity distribution agreement (the Equity Distribution Agreement) with J.P. Morgan Securities LLC and Wells Fargo Securities, LLC (the Managers). The ATM Program concluded on January 14, 2025 and we completed the sale of approximately 27.8 million additional shares of common stock for total gross proceeds of approximately $200.0 million and net proceeds of approximately $195.5 million, after $4 million in commissions to the Managers and $0.5 million in other offering costs.
Removed paragraphs (2)
Previous report
•Supply Constraints. The semiconductor industry has experienced supply constraints for certain items, although constraints appear to be alleviating in recent months. We have successfully managed through challenges relating to obtaining certain necessary production and processing equipment thus far, and we have continued to see supply availabilities and lead times stabilize across many direct materials. In addition, although we have not experienced significant impacts to date, the ongoing military conflict between Russia and Ukraine and the ongoing conflicts in the Middle East may further exacerbate global supply constraints.
Previous report
•Operating loss was $230.1 million compared to $94.9 million.
Reworded paragraphs (43)
Previous wording
•Overall Demand for Products and Applications Using Our Wolfspeed Materials and Devices. Our potential for growth depends significantly on the continued adoption of silicon carbide materials, device products in the power markets and our ability to win new designs for these applications. Demand also fluctuates based on various domestic and global economic and market cycles, continuously evolving industry supply chains, trade and tariff terms, and inflationary impacts, as well as evolving competitive dynamics in each of our respective markets. These uncertainties make demand difficult to forecast for us and our customers. Recently, we and other semiconductor companies have been experiencing softening demand for power products in industrial and energy applications. We continue to experience increased mid- and long-term demand for our power products designed for electrical vehicle applications, and we are working closely with our customer base to best match our supply to their near-term demand. We believe the increased demand for our power products reflects the value that the industry places on a transition to silicon carbide materials and devices while also evidencing the growing global focus on adopting higher efficiency energy solutions, including electric vehicle and related technologies. We believe these trends could have a significant positive impact on revenues in future periods as we increase capacity to meet this increased demand.
Current wording
•Overall Demand for Products and Applications Using Our Wolfspeed Materials and Devices. Our potential for growth depends significantly on the continued adoption of silicon carbide materials, device products in the power markets and our ability to win new designs for these applications. Demand also fluctuates based on various domestic and global economic and market cycles, continuously evolving industry supply chains, trade and tariff terms, and inflationary impacts, as well as evolving competitive dynamics in each of our respective markets. These uncertainties make demand difficult to forecast for us and our customers. Recently, we and other semiconductor companies have been experiencing softening demand for our products. We continue to experience increased mid- and long-term demand for our power products designed for electrical vehicle applications, though at a slower pace than initially expected. We believe the increased demand for our power products reflects the value that the industry places on a transition to silicon carbide materials and devices while also evidencing the growing global focus on adopting higher efficiency energy solutions, including electric vehicle and related technologies. We believe these trends could have a significant positive impact on revenues in future periods as we increase capacity to meet this increased demand.
Previous wording
Overview of the three months ended September 29, 2024
Current wording
Overview of the six months ended December 29, 2024
Previous wording
The following is a summary of our continuing operations financial results as of and for the three months ended September 29, 2024 compared to the three months ended September 24, 2023, unless otherwise stated.
Current wording
The following is a summary of our continuing operations financial results as of and for the six months ended December 29, 2024 compared to the six months ended December 31, 2023, unless otherwise stated.
Previous wording
•Our year-over-year revenue decreased ($2.7) million to $194.7 million.
Current wording
•Our year-over-year revenue decreased ($30.6) million to $375.2 million.
Previous wording
•Gross margin decreased to (18.6)% from 12.5%. Gross profit decreased to ($36.2) million from $24.7 million. Gross margin and gross profit include the impacts of underutilization costs primarily in connection with the start of production at the Mohawk Valley Fab and restructuring and closure-related costs associated with the Durham fab. Underutilization was $26.4 million compared to $34.4 million.
Current wording
•Gross margin decreased to (19.6)% from 12.9%. Gross profit decreased to ($73.4) million from $52.5 million. Gross margin and gross profit include the impacts of underutilization costs primarily in connection with the start of production at the Mohawk Valley Fab and restructuring and closure-related costs associated with the Durham Fab. Underutilization was $55.3 million compared to $70.0 million.
Previous wording
•Diluted loss per share was $2.23 compared to $0.99.
Current wording
•Diluted loss per share was $5.12 compared to $1.99.
Previous wording
•Combined cash, cash equivalents and short-term investments was $1,687.6 million at September 29, 2024 and $2,174.6 million at June 30, 2024.
Current wording
•Combined cash, cash equivalents and short-term investments was $1,404.8 million at December 29, 2024 and $2,174.6 million at June 30, 2024.
Previous wording
•Long-term debt, net was $6,169.9 million at September 29, 2024 and $6,161.1 million at June 30, 2024.
Current wording
•Long-term debt, net was $6,423.8 million at December 29, 2024 and $6,161.1 million at June 30, 2024.
Previous wording
•Cash used in operating activities was $132.0 million compared to $112.7 million.
Current wording
•Cash used in operating activities was $327.1 million compared to $295.6 million.
Previous wording
•Purchases of property and equipment, net were $395.0 million (net of $42.0 million in reimbursements) compared to $402.4 million (net of $39.6 million in reimbursements).
Current wording
•Purchases of property and equipment, net were $796.8 million (net of $42.0 million in reimbursements) compared to $972.8 million (net of $79.4 million in reimbursements).
Previous wording
•Design-ins were $1.5 billion compared to $2.2 billion.
Current wording
•Design-ins were $3.0 billion compared to $4.3 billion.
Previous wording
•Design-wins were $1.3 billion compared to $1.5 billion.
Current wording
•Design-wins were $2.1 billion compared to $4.4 billion.
Previous wording
We believe we are uniquely positioned as an innovator in the global semiconductor industry. The strength of our balance sheet provides us the ability to invest in our business and increase production capacity, as indicated by the Mohawk Valley Fab, where we started revenue production in late fiscal 2023. In addition, an expansion of our materials factory in Durham, North Carolina and the construction of a new materials manufacturing facility in Siler City, North Carolina are expected to increase our production capacity.
Current wording
We believe we are uniquely positioned as an innovator in the global semiconductor industry. We are committed to a plan to invest in our business and increase production capacity, as indicated by the Mohawk Valley Fab, where we started revenue production in late fiscal 2023, and an expansion of our materials factory in Durham, North Carolina and the construction of a new materials manufacturing facility in Siler City, North Carolina.
Previous wording
During the first quarter of fiscal 2025, we initiated a headcount reduction and facility consolidation plan (the 2025 Restructuring Plan) intended to further optimize our cost structure as we accelerate our transition from 150mm to 200mm silicon carbide devices. Refer to Note 13, "Restructuring," and Note 14, "Subsequent Events" to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report for additional discussion of the financial impact of these activities.
Current wording
During the first quarter of fiscal 2025, we initiated a headcount reduction and facility consolidation plan (the 2025 Restructuring Plan) intended to further optimize our cost structure as we accelerate our transition from 150mm to 200mm silicon carbide devices. Refer to Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report for additional discussion of the financial impact of these activities.
Previous wording
We believe we have the ability to navigate the current environment while maintaining our capital expenditure plans to support future growth to meet long-term demand, although demand in the mid-term appears to be ahead of the industry's supply capabilities. For fiscal 2025, we have targeted approximately $1.1 billion to $1.3 billion of net capital investment.
Current wording
We believe we have the ability to navigate the current environment while maintaining our capital expenditure plans to support future growth to meet long-term demand. For fiscal 2025, we have targeted approximately $1.1 billion to $1.3 billion of net capital investment.
Previous wording
Selected consolidated statements of operations data for the three months ended September 29, 2024 and September 24, 2023 were as follows:
Current wording
Selected consolidated statements of operations data for the three and six months ended December 29, 2024 and December 31, 2023 were as follows:
Previous wording
Revenue for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 decreased due to the softening of demand in industrial and energy applications, which has been largely fulfilled from our North Carolina fab. This decrease has been partially offset by growth in demand for automotive applications.
Current wording
Revenue for the three and six months ended December 29, 2024 as compared to the three and six months ended December 31, 2023 for our power product line decreased due to the softening of demand in industrial and energy applications. This decrease has been partially offset by growth in demand for automotive applications, though we are beginning to experience slower growth for automotive applications than we previously expected.
Previous wording
Gross profit and gross margin were impacted by a less favorable product mix resulting from the softening of demand in industrial and energy applications. Production capacity in the North Carolina fab shifted from industrial and energy products to automotive products, which have a higher production cost in that fab.
Current wording
Gross profit and gross margin were impacted by a less favorable product mix resulting from the softening of demand for our products. Production capacity in the Durham fab shifted from industrial and energy products to automotive products, which have a higher production cost in that fab.
Previous wording
Gross profit for the three months ended September 29, 2024 includes restructuring costs of $11.7 million of non-cash asset-related charges from accelerated depreciation and $22.6 million of other exit costs for our restructuring plan adopted in the first quarter of fiscal 2025 as discussed in Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Current wording
Gross profit for the three and six months ended December 29, 2024 includes:
Previous wording
Gross profit and gross margin for both periods include underutilization costs incurred within cost of revenue in connection with the start of production at our Mohawk Valley Fab. Underutilization costs for the three months ended September 29, 2024 were $26.4 million as compared to $34.4 million for the three months ended September 24, 2023.
Current wording
•$28.9 million and $55.3 million, respectively, of underutilization costs in connection with the start of production at our Mohawk Valley Fab. Underutilization costs were $35.6 million and $70.0 million for the three and six months ended December 31, 2023, respectively.
Previous wording
The increase in Research and development expenses for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 was primarily due to increases in product material costs.
Current wording
The increase in research and development expenses for the six months ended December 29, 2024 as compared to the six months ended December 31, 2023 was primarily due to increases in product material costs, partially offset by a decrease in salary and benefits costs related to the reduction in headcount. The decrease in research and development expenses for the three months ended December 29, 2024 as compared to the three months ended December 31, 2023 was immaterial.
Previous wording
The decrease in Sales, general and administrative expenses for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 was primarily driven by a decrease in people costs.
Current wording
The decrease in sales, general and administrative expenses for the three and six months ended December 29, 2024 as compared to the three and six months ended December 31, 2023 was primarily driven by a decrease in salary and benefits costs of approximately $11.0 million and $13.6 million, respectively, due to reduced headcount and a decrease in travel and professional services of $3 million as compared to the six months ended December 31, 2023, resulting from cost optimization.
Previous wording
Start-up costs increased for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 due to increased costs incurred in connection with the construction of our materials manufacturing facility in Siler City, North Carolina.
Current wording
Start-up costs increased for the three and six months ended December 29, 2024 as compared to the three and six months ended December 31, 2023 due to increased costs incurred in connection with the construction of our materials manufacturing facility in Siler City, North Carolina.
Previous wording
Loss on Disposal or Impairment of Other Assets
Current wording
Loss on Disposal or Impairment of Long-Lived Assets
Previous wording
Loss on disposal or impairment of other assets primarily relate to write-offs of fixed assets, as well as the write-offs of impaired or abandoned patents, partially offset by proceeds from asset sales.
Current wording
Loss on disposal or impairment of long-lived assets primarily relate to write-offs of fixed assets, as well as the write-offs of impaired or abandoned patents, partially offset by proceeds from asset sales. Loss on disposal or impairment of long-lived assets for the three and six months ended December 29, 2024 consist of impairments of abandoned assets totaling $124.5 million related to the 2025 Restructuring Plan as discussed in Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Previous wording
Restructuring and other closure-related costs for the three months ended September 29, 2024 consist of:
Current wording
Restructuring and other closure-related costs for the three and six months ended December 29, 2024 consist of:
Previous wording
•$36.5 million of employee severance and benefit costs;
Current wording
•$15.0 million and $51.5 million, respectively, of employee severance and benefit costs;
Previous wording
•$7.1 million of non-cash asset-related charges from accelerated depreciation; and
Current wording
•$5.7 million and $12.8 million, respectively, of non-cash asset-related charges from accelerated depreciation; and
Previous wording
•$9.2 million of other closure-related costs related to our restructuring plan adopted in the first quarter of fiscal 2025 as discussed in Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Current wording
•$11.5 million and $20.7 million of other closure-related costs related to the 2025 Restructuring Plan as discussed in Note 13, "Restructuring," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Previous wording
Interest income. The decrease in interest income for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 was primarily due to lower short-term investment balances.
Current wording
Interest income. The decrease in interest income for the three and six months ended December 29, 2024 as compared to the three and six months ended December 31, 2023 was primarily due to lower short-term investment balances.
Previous wording
Interest expense, net of capitalized interest. The increase in interest expense for the three months ended September 29, 2024 as compared to the three months ended September 24, 2023 was primarily due to higher average debt outstanding offset, in part, by increased interest capitalization in the three months ended September 29, 2024. Refer to Note 9 "Long-term Debt," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report for the summary of outstanding debt.
Current wording
Interest expense, net of capitalized interest. The increase in interest expense for the three and six months ended December 29, 2024 as compared to the three and six months ended December 31, 2023 was primarily due to higher average debt outstanding offset, in part, by increased interest capitalization in the three and six months ended December 29, 2024. Refer to Note 9 "Long-term Debt," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report for the summary of outstanding debt.
Previous wording
The change in our effective tax rate for the three months ended September 29, 2024 compared to the three months ended September 24, 2023 was immaterial.
Current wording
The change in our effective tax rate for the three and six months ended December 29, 2024 compared to the three and six months ended December 31, 2023 was immaterial.
Previous wording
Based on past performance and current expectations, we believe our current working capital will be adequate to meet our cash needs for at least the next 12 months. With the strength of our working capital position, we believe that we have the ability to continue to invest in the completion of our near-term expansion of our production capacity, further develop our product portfolio and, when necessary or appropriate, make selective acquisitions or other strategic investments to strengthen our product portfolio or secure key intellectual properties. However, even with the strength of our working capital position, we expect to need additional funding to fully complete all of our intended capacity expansions. We obtained additional funding of $250.0 million in October 2024 through the issuance of additional senior secured notes due 2030 (the 2030 Senior Notes) and have the ability to issue an additional $500.0 million of additional tranches under the Amended and Restated Indenture governing the 2030 Senior Notes (the 2030 Senior Notes Indenture), subject to certain conditions.
Current wording
Based on past performance and current expectations, we believe our current working capital will be adequate to meet our cash needs for at least the next 12 months. We believe that we have the ability to continue to invest in the completion of our near-term expansion of our production capacity, further develop our product portfolio and, when necessary or appropriate, make selective acquisitions or other strategic investments to strengthen our product portfolio or secure key intellectual properties. However, we expect to need additional funding to fully complete all of our intended capacity expansions. Further, we may need to reduce capital expenditures and/or take other steps to preserve working capital in the future in order to ensure that we can meet our needs and obligations and maintain compliance with our debt covenants. We obtained additional funding of $250.0 million in October 2024 through the issuance of additional senior secured notes due 2030 (the 2030 Senior Notes) and have the ability to issue an additional $500.0 million of additional tranches under the Amended and Restated Indenture governing the 2030 Senior Notes (the 2030 Senior Notes Indenture), subject to certain conditions.
Previous wording
In accordance with the terms of the non-binding preliminary memorandum of terms (PMT) with the United States Department of Commerce that require us to restructure or refinance our outstanding 1.75% convertible senior notes due May 1, 2026 (2026 Notes), we are actively evaluating our options, including the refinancing of the 2026 Notes through the near-term issuance of equity-linked securities and/or other financing options, subject to market conditions and other considerations.
Current wording
In accordance with the terms of the non-binding preliminary memorandum of terms (PMT) with the United States Department of Commerce that require us to restructure or refinance our outstanding 1.75% convertible senior notes due May 1, 2026 (the 2026 Notes), we are actively evaluating our options, including the refinancing of the 2026 Notes through the near-term issuance of equity-linked securities and/or other financing options, subject to market conditions and other considerations.
Previous wording
In the first quarter of fiscal 2024, we entered into the Unsecured Customer Refundable Deposit Agreement (the CRD Agreement) with Renesas Electronics America Inc. (Renesas America), pursuant to which Renesas America agreed to provide us up to $2 billion in unsecured deposits, subject to certain conditions. We received an initial deposit of $1 billion in the first quarter of fiscal 2024, a second deposit of $500 million in the third quarter of fiscal 2024 and the third and final deposit in the fourth quarter of fiscal 2024. As discussed in Note 14, "Subsequent Events" to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, we entered into an amendment to the CRD Agreement in October 2024 to permit us to pay the accrued interest on the outstanding loans payable on the last business day of each of December 2024 and June 2025 by adding those amounts to the outstanding principal amount of the loans rather than in cash, reducing our expected cash interest payments in fiscal 2025 by $120.0 million.
Current wording
In the first quarter of fiscal 2024, we entered into the Unsecured Customer Refundable Deposit Agreement (the CRD Agreement) with Renesas Electronics America Inc. (Renesas America), pursuant to which Renesas America agreed to provide us up to $2 billion in unsecured deposits, subject to certain conditions. We received an initial deposit of $1 billion in the first quarter of fiscal 2024, a second deposit of $500 million in the third quarter of fiscal 2024 and the third and final deposit in the fourth quarter of fiscal 2024. As discussed in Note 9, "Long-term Debt" to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, we entered into an amendment to the CRD Agreement in October 2024 to permit us to pay the accrued interest on the outstanding loans payable on the last business day of each of December 2024 and June 2025 by adding those amounts to the outstanding principal amount of the loans rather than in cash, reducing our expected cash interest payments in fiscal 2025 by approximately $120.0 million.
Previous wording
As also discussed in Note 14, "Subsequent Events", to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, in the second quarter of fiscal 2025, we issued an additional $250.0 million aggregate principal amount of 2030 Senior Notes. The 2030 Senior Notes Indenture permits us to issue additional tranches up to $500.0 million subject to certain conditions. We are required to maintain a minimum amount of at least $630.0 million in unrestricted cash and cash equivalents as of the last day of any calendar month through March 31, 2025 and at least $750.0 million beginning on April 1, 2025, which amount will be reduced over time upon the fulfillment of certain conditions
Current wording
As also discussed in Note 9, "Long-term Debt", to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, in the second quarter of fiscal 2025, we issued an additional $250.0 million aggregate principal amount of 2030 Senior Notes. The 2030 Senior Notes Indenture permits us to issue additional tranches up to $500.0 million subject to certain conditions. We are required to maintain a minimum amount of at least $630.0 million in unrestricted cash and cash equivalents as of the last day of any calendar month through March 31, 2025 and at least $750.0 million beginning on April 1, 2025, which amount will be reduced over time upon the fulfillment of certain conditions
Previous wording
As of September 29, 2024, we had unrealized losses on our short-term investments of $4.4 million. All of our short-term investments had investment grade ratings, and any such investments that were in an unrealized loss position at September 29, 2024 were in such position due to interest rate changes, sector credit rating changes or company-specific rating changes. We evaluate our short-term investments for expected credit losses. We believe we are able and intend to hold each of the investments held with an unrealized loss as of September 29, 2024 until the investments fully recover in market value. No allowance for credit losses was recorded as of September 29, 2024.
Current wording
As of December 29, 2024, we had unrealized losses on our short-term investments of $4.2 million. All of our short-term investments had investment grade ratings, and any such investments that were in an unrealized loss position at December 29, 2024 were in such position due to interest rate changes, sector credit rating changes or company-specific rating changes. We evaluate our short-term investments for expected credit losses. We believe we are able and intend to hold each of the investments held with an unrealized loss as of December 29, 2024 until the investments fully recover in market value. No allowance for credit losses was recorded as of December 29, 2024.
Previous wording
We started construction on a new materials manufacturing facility in Siler City, North Carolina in September 2022. We expect to invest approximately $2.3 billion in total construction, equipment and other related costs for the facility through fiscal 2025. As of September 29, 2024, we have spent approximately $1.6 billion.
Current wording
We started construction on a new materials manufacturing facility in Siler City, North Carolina in September 2022. We expect to invest approximately $2.3 billion in total construction, equipment and other related costs for the facility through fiscal 2025. As of December 29, 2024, we have spent approximately $1.9 billion.
Previous wording
We have take-or-pay supplier agreements that require a minimum of $221.2 million of purchases over the next four years and a commitment to provide quarterly capacity reservation deposits with a remaining total of $15.1 million, as outlined further in Note 5, "Commitments and Contingencies," to our unaudited financial statements in Part I, Item 1 of this Quarterly Report.
Current wording
We have take-or-pay supplier agreements that require a minimum of $212.6 million of purchases over the next four years and a commitment to provide quarterly capacity reservation deposits with a remaining total of $11.1 million, as outlined further in Note 5, "Commitments and Contingencies," to our unaudited financial statements in Part I, Item 1 of this Quarterly Report.
Previous wording
Given our current cash position, we believe we will be able to fund daily operating expenses, debt service, working capital and capital requirements for at least the next 12 months, but we expect to need additional funding to complete our previously announced expansion initiatives. As discussed in Note 14 "Subsequent Events," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, we have obtained additional funding of $250.0 million through the issuance of additional 2030 Senior Notes, and expect to pursue additional funding through the United States CHIPS and Science Act of 2022 (the CHIPS Act) in accordance with the terms of a definitive direct funding award agreement with the United States Department of Commerce as contemplated by the PMT, equity offerings or other non-debt capital sources, and debt financings (which may involve refinancing, modifying or retiring some of our existing debt). In addition, we may also apply for and potentially sell tax credits as part of the IRA to further fund our expansion initiatives.
Current wording
Given our current cash position, we believe we will be able to fund daily operating expenses, debt service, working capital and capital requirements for at least the next 12 months, but we expect to need additional funding to complete our previously announced expansion initiatives. As discussed in Note 9 "Long-term Debt," to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report, we have obtained additional funding of $250.0 million through the issuance of additional 2030 Senior Notes, and expect to pursue additional funding through the United States CHIPS and Science Act of 2022 (the CHIPS Act) in accordance with the terms of a definitive direct funding award agreement with the United States Department of Commerce as contemplated by the PMT, equity offerings or other non-debt capital sources, and debt financings (which may involve refinancing, modifying or retiring some of our existing debt).
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