Wolfspeed: China’s export restrictions won’t affect its supply chain

DURHAM – Breaking a media silence since China announced export restrictions of materials crucial to Wolfspeed’s production of radio frequency devices, the Durham-based semiconductor giant says its supply chain won’t be affected.

The company (NYSE: WOLF) issued a statement after the markets closed on Monday.

Said Wolfspeed:

“Following an internal review, the company has confirmed that its supply chain will not be impacted by the proposed export restrictions on gallium and germanium. Wolfspeed strives to manage its supply chain with our supply partners through principles such as quality, availability, social responsibility, and cost. We appreciate that global events can lead to dynamic market conditions that will require us to periodically review our supply chain, and we will continue to do so to ensure Wolfspeed’s needs are fulfilled.”

The statement was attributed to spokesperson Melinda Walker.

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As noted by the company, China’s ban on gallium and germanium is set to take effect on Aug. 1.

Gallium is used by Wolfspeed in the construction of chips for radio frequency products, according to its website.

The embargo news came almost simultaneously with Wolfspeed landing a big semiconductor contract that not only covers 10 years but also provides a $2 billion cash infusion to the company which needs billions for its expansion plans.

On July 5 in Tokyo, Wolfspeed CEO Gregg Lowe signed the deal with Japan-based Renesas Electronics Corporation, a global company valued at nearly $400 billion and operates a facility in Morrisville.

Greensboro-based Qorvo also could be affected by China’s restrictions.