Dear Stakeholders,

For more than 30 years, since the company’s beginnings in a lab at NC State University in Raleigh, N.C., Cree | Wolfspeed has been innovating and delivering technology solutions that enable our customers and society to do more with less.  Now a world-renowned commercial supplier of the fastest, most efficient semiconductor components ever available, our solutions enable greater efficiency and performance, smaller systems and lower costs.

Who we are and where we’re heading

We are on a mission to transform the semiconductor market with the adoption of silicon carbide. Our continued innovation and commercialization of silicon carbide and GaN enable other industry pioneers to develop products that are the next generation in energy efficiency. Wolfspeed® technologies are at the heart of today’s biggest industry transformations, including the move to electric vehicles, wireless infrastructure that will unlock the potential of smart cities, and ubiquitous power storage that will enable the broader adoption of alternative energy.

Over the last year or so, more than $350 billion in investments have been announced in the electric vehicle market, and we’re committed to driving this technology adoption over the coming decade. Silicon carbide is accelerating the EV revolution, enabling greater range, faster on- and off-board charging, and smaller batteries, as well as superior performance. Our team has done a remarkable job of rapidly increasing capacity to meet market demand. In 2018, we doubled our silicon carbide materials manufacturing capacity. Our recent announcement of a $1 Billion expansion will increase our silicon carbide and GaN wafer fabrication capacity by 30-fold, enabling customers to more rapidly develop the next generation of energy-efficient applications.

Employee health, safety, wellness and education

We are committed to creating and sustaining a culture where all employees are engaged and can contribute to their full potential. Our culture fosters an inclusive workplace, and our hiring efforts develop employees from the communities where we operate. This year, we committed to significant changes in our people strategy as we aligned the team around our new business strategy. Our peoples’ daily experience and ability to do their best work is our top priority. They are the heart of the company, and their commitment and engagement in our business will drive our continued success.

We hire the best available talent, develop our employees and promote from within.  We fuel long-term growth opportunities for our employees through an internal mobility practice that combines ongoing workforce development, leadership training, education assistance and career path planning. In 2018, we converted more than 500 temporary employee positions to full-time and increased the starting wage for entry-level employees. To support our future expansion, we plan to partner with state and local community and four-year colleges to develop training programs to prepare our workforce for the long-term, high-quality employment and growth opportunities the new facilities will present.

In 2018, we also introduced an annual internship program. Since the launch of the program, we have more than doubled the intern population, extended the program internationally and increased the diversity rate by 25%.

In parallel, we refreshed our corporate values. Hundreds of employees participated in focus groups, which culminated in the creation of values the entire team can support. With the input from those focus groups and simply because it’s the right thing to do, we have been steadily improving our benefits programs to more closely align with employees’ needs. From new parental leave and adoption assistance programs, to enhanced time off and education assistance, we offer best-in-class amenities for employees.

Community engagement

We have developed and deployed a company-wide philanthropic program with a mission to help our communities ensure our neighbors have a roof over their heads, enough to eat and an opportunity to excel. We have enhanced partnerships with local food banks, STEM organizations and Habitat for Humanity in the communities where we operate, and continue to live our values through direct impacts that improve access to food, education and housing for our neighbors. The company’s Women’s Initiative, our first employee resource group, is dedicated to empowering our women and continuously hosts programs and events to cultivate and celebrate the rich diversity of thought, perspectives and life experiences so critical to our success.

Product sustainability and protection of the environment

Our products enable customers to deliver solutions that significantly reduce greenhouse gas emissions by displacing fossil fuel usage in transportation and energy generation and storage. Our mission is to lead the innovation and commercialization of silicon carbide and GaN, replacing silicon as the default technology, and subsequently, enabling designers to invent systems for electric vehicles, renewable energy, energy storage, communications infrastructure and other industrial uses. In 2018, our lighting, LED, power and radio frequency products produced will save approximately 440 million MWh and 220 million metric tons CO2 equivalents over their lifetimes compared to less efficient alternatives.

In our manufacturing operations, we strive to minimize resource use and reduce the environmental impact of our production processes. We recently announced a “Zero-Defect Mindset” to transform our quality, culture and behaviors. This includes key partnerships with operations, business, and sales to keep quality as one of our competitive advantages. This mindset will reduce waste, improve raw material usage, as well as increase customer satisfaction and help us meet the highest standards required by our target industries.

Sustainability requires continued focus, evaluation, assessment and action to unlock the potential of today’s science and technology to achieve greater worldwide impact. We are committed to do our part to enable the solutions to global efficiency challenges. At Cree | Wolfspeed there is no finish line. There is only the future, and we will continue to pursue a more energy-efficient, responsible future for all.

We appreciate your interest in our company and hope you find this information useful.

Sincerely,

Gregg Lowe

Gregg Lowe
President and CEO