Wolfspeed Inc announced after markets closed on Tuesday that it has initiated a patent infringement lawsuit against Navitas Semiconductor, asserting that Navitas's product lineup infringes core Wolfspeed patents covering gallium nitride - GaN - and silicon carbide - SiC - technologies. The complaint was filed in the U.S. District Court for the Western District of North Carolina, the company said in a press release issued after trading ended.
The plaintiff characterizes the asserted intellectual property as "foundational" to its business, framing the litigation as a defensive measure to preserve key technology assets. Wolfspeed named Navitas Semiconductor Corp as the defendant in the suit. Navitas, a fabless designer of GaN and SiC power integrated circuits that competes in next-generation power device markets, has not issued a public response to the complaint as of the announcement.
The lawsuit identifies a set of U.S. patents that Wolfspeed says are infringed, listing U.S. Patent Nos. 8,169,005; 10,998,418; 10,886,396; 10,749,443; and 11,888,392. According to the complaint, the alleged infringing products include Navitas's GaN-based FET lines - GaNFast, GaNSlim, and GaNSafe - as well as its GeneSiC MOSFETs and SiCPAK modules.
Market reaction followed the filing. Wolfspeed shares closed down $3.47, or 8.79 percent, at $36.00 on the New York Stock Exchange, trading to an intraday low of $34.01 during Tuesday's session. In after-hours trading the stock regained some ground, rising 0.64 percent to $36.23.
Navitas's stock also fell on Tuesday, closing down 8.14 percent at $13.99 on the Nasdaq. After the market close, the share price showed little movement.
Wolfspeed, which is headquartered in Durham, North Carolina and formerly traded under the name Cree, has invested heavily in SiC manufacturing capacity and maintains a portfolio of patents it describes as a competitive moat. The suit lands in a section of the semiconductor industry characterized by rapid growth: SiC and GaN power devices are material components in electric vehicle drivetrains, renewable energy inverters, and industrial power conversion systems, areas where design wins and IP control can have significant long-term value.
At the close of trading on Tuesday Wolfspeed's market capitalization was approximately $1.74 billion. The stock's decline that day pulled it well below its 52-week high of $80.82, though it remained substantially above its 52-week low of $1.16, reflecting a one-year rally of more than 1,300 percent tied to the company's operational recovery.
Trading volume for Wolfspeed on Tuesday was roughly 5.45 million shares, below the company's three-month average volume of 7.6 million shares. That relative volume suggests the price move was influenced more by sentiment repricing in the sector than by an extensive institutional sell-off, based on the company's reported figures.
The legal filing highlights potential remedies that could be sought if Wolfspeed's claims are upheld, including injunctions or royalty payments on accused product lines. The complaint does not itself predict an outcome, and the court process may determine whether product redesigns, licensing obligations, or sales restrictions are warranted. Conversely, should Wolfspeed's suit fail, the ruling could strengthen Navitas's competitive standing and place additional pressure on Wolfspeed's shares.
Investors and market participants will be watching for Navitas's formal legal response and for subsequent court filings that may clarify the scope and specifics of the infringement allegations. At present, Wolfspeed's public statement positions the action as protection of what it views as central intellectual property; Navitas has not publicly commented on the matter.
Clear summary
Wolfspeed has sued Navitas in federal court, alleging infringement of multiple patents related to GaN and SiC power device technologies. The dispute prompted notable declines in both companies' share prices during a broader chip-sector pullback, and could lead to injunctions, licensing, or product changes depending on the court's findings.
Key points
- Wolfspeed filed the complaint in the U.S. District Court for the Western District of North Carolina after markets closed on Tuesday.
- The suit names several U.S. patents and accuses a range of Navitas products - including GaNFast, GaNSlim, GaNSafe, GeneSiC MOSFETs, and SiCPAK modules - of infringement.
- Both companies' stocks fell in Tuesday trading amid a broader semiconductor sector selloff; Wolfspeed fell 8.79 percent to $36.00, and Navitas fell 8.14 percent to $13.99.
Risks and uncertainties
- Court outcome uncertainty - The ultimate ruling could impose injunctions or royalties on Navitas products if Wolfspeed's claims are upheld, affecting sales and product strategy in power semiconductor markets.
- Market reaction - Negative investor sentiment tied to the dispute could continue to pressure share prices for both companies while the litigation proceeds.
- Operational implications - If remedies include product redesigns or sales restrictions, Navitas may face near-term operational and commercial disruption in its GaN and SiC product lines.