Fabricated Knowledge

Share this post

SiC as a Dog: Tesla Investor Day

www.fabricatedknowledge.com

SiC as a Dog: Tesla Investor Day

A quick note about Silicon Carbide, and who wins and loses.

Doug O'Laughlin
Mar 2
10
2
Share this post

SiC as a Dog: Tesla Investor Day

www.fabricatedknowledge.com

This will be a concise update on the SiC blowup after the Tesla Investor Day this morning. I will assume you know about Silicon Carbide; if you don’t, please refer to a somewhat dated piece I wrote about Silicon Carbide here.

Fabricated Knowledge
Automotive Semiconductors: EVs and Silicon Carbide
Read more
2 years ago · 6 likes · 1 comment · Doug O'Laughlin

Another nice-to-read piece is the Wolfspeed Analyst day, which gives context for how much Silicon Carbide capacity is being ramped. On to the update.

Fabricated Knowledge
Earnings: Wolfspeed Analyst day, INTC, SITM, RMBS, QCOM, QRVO, ENTG, AMD, LSCC, CRUS, and More
Read more
5 months ago · 5 likes · 6 comments · Doug O'Laughlin

If you didn’t see the big news, Tesla believes their new drive unit will have ~75% less Silicon Carbide than their current drive train.

That is a massive wrench in the Silicon Carbide content story, and shares of almost every Silicon Carbide exposed company are down meaningfully. That’s happening as we speak.

I think the risk here is the longer-term timeframe for SiC. If Tesla really can reduce the content by 75%, then that’s quite a bit less SiC, and the massive builds being done at WOLF will be a systematic oversupply for Silicon Carbide.

But before we jump off the cliff and short all the companies into the hole, I want to step back off the cliff and talk about some puts and takes. I think today’s share decrease is a clear opportunity for some companies at cheaper prices but an apparent detriment to others. I want to talk about which is which, but of course, that will be behind the paywall.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2023 mule
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing