Aug 21 (Reuters) - Wolfspeed ( WOLF ) forecast

first-quarter revenue below estimates on Wednesday, anticipating

manufacturing issues that could affect its production capacity

amid slowing EV sales.

Shares of the chipmaker, however, surged around 6% in

extended trading, as CEO Gregg Lowe said the company continues

to see strong growth from its Mohawk Valley, New York-based chip

fabrication facility.

In June, Wolfspeed ( WOLF ) had said it faced issues with equipment

at its Durham-based 150-mm chip fabrication plant and which

could potentially impact its first-quarter revenue by about $20

million.

Meanwhile, Wolfspeed's ( WOLF ) Mohawk Valley chip fabrication plant

is targeted to reach 25% of its operating capacity in the first

quarter, ahead of schedule.

"Our 200mm device fab is currently producing solid results

... This improved profitability gives us the confidence to

accelerate the shift of our device fabrication to Mohawk

Valley," Lowe said in a statement.

Shares started to recover as the market acknowledged the

cost benefits of the new 200-mm Mohawk Valley fabrication unit,

compared to the old 150-mm one, said Michael Ashley Schulman,

chief investment officer, Running Point Capital.

The company counts General Motors ( GM ) and Mercedes-Benz

among its customers and makes chips using silicon

carbide, which is more energy-efficient material than standard

silicon, for tasks such as transmitting power from an electric

car's batteries to its motors.

Wolfspeed ( WOLF ) expects first-quarter revenue to be between $185

million and $215 million, the mid-point of which is below

analysts' average estimate of $211.7 million, according to LSEG

data.

It expects adjusted loss per share to be between $1.09

and $0.90, compared with estimate of loss of 84 cents per share.

Revenue for the fourth-quarter came in at $200.1

million, compared with average estimate of $201.2 million.

Wolfspeed's ( WOLF ) net loss per share was $1.39 per share, compared

with loss of $0.73 per share a year earlier.