Announcement
Wolfspeed Inc (NYSE:WOLF), headquartered in Durham, North Carolina and formerly known as Cree, announced after the Tuesday market close that it had filed a patent‑infringement lawsuit against rival Navitas Semiconductor Corp (NASDAQ:NVTS). The complaint was lodged in the U.S. District Court for the Western District of North Carolina and asserts that a broad range of Navitas products infringe Wolfspeed’s foundational gallium nitride (GaN) and silicon carbide (SiC) intellectual property portfolio.
Legal Details
The lawsuit cites U.S. Patent Nos. 8,169,005; 10,998,418; 10,886,396; 10,749,443; and 11,888,392 as being infringed. Accused Navitas product lines include its GaN‑based FET families – GaNFast®, GaNSlim™, and GaNSafe® – as well as GeneSiC™ MOSFETs and SiCPAK® modules. Wolfspeed described the action as “decisive” to protect its core technology assets, emphasizing that an adverse ruling could force Navitas to redesign products, pay royalties, or face sales restrictions. Navitas has not issued a public response at the time of reporting.
Stock Impact
Following the filing, Wolfspeed shares closed down $3.47, an 8.79% decline, at $36.00 on the NYSE, hitting an intraday low of $34.01. In after‑hours trading the stock recovered 0.64% to $36.23. Navitas closed 8.14% lower at $13.99 on the NASDAQ and remained relatively flat after the close. The sell‑off occurred as part of a broader decline in the chip sector.
Market Context
The announcement pushed Wolfspeed well below its 52‑week high of $80.82, though the price remains far above its 52‑week low of $1.16, reflecting a one‑year gain of more than 1,300% tied to the company’s operational recovery. At the close, Wolfspeed’s market capitalization was approximately $1.74 billion, classifying it as a mid‑cap participant in the power semiconductor space. Trading volume on the day was about 5.45 million shares, below the three‑month average of 7.6 million, indicating the move was driven more by sentiment repricing than a broad institutional exodus.
Sector Significance
The dispute centers on the high‑growth power‑device arena where SiC and GaN technologies are critical for electric‑vehicle drivetrains, renewable‑energy inverters, and industrial power conversion systems. Wolfspeed has invested heavily in SiC manufacturing capacity, and its IP portfolio is viewed as a significant competitive moat in an increasingly crowded field. If Wolfspeed’s claims are upheld, Navitas could face injunctions or royalty demands on the cited product lines; a failed suit would reinforce Navitas’s competitive position and could further pressure Wolfspeed’s share price. Investors are awaiting Navitas’s formal legal response and any subsequent court filings that will clarify the scope of the infringement allegations.