NEW YORK, Oct 22 (Reuters) -

Activist investor Jana Partners urged Wolfspeed Inc ( WOLF )

on Tuesday to boost its share price by increasing gross margins,

exploring a sale of its device business and pursuing a partial

sale of its silicon carbide wafer business to a strategic

partner.

Such steps could push Wolfspeed's ( WOLF ) share price significantly

higher, Scott Ostfeld, Jana Partners' managing partner said.

Wolfspeed ( WOLF ), the world's largest maker of silicon carbide,

closed trading at $15.39 on Monday, having lost 64% this year.

Ostfeld spoke at the 13D Monitor Active-Passive Investor

Summit in New York after the firm took a position in the company

this year and pushed it to adopt a "back-to-basics" strategy

that focuses on better execution and considers strategic

opportunities such as a sale.

Last week, Wolfspeed ( WOLF ) said it added two new directors to its

board and was awarded a $750-million grant under the federal

CHIPS and Science Act.

Combined with $1 billion in cash tax refunds for advanced

manufacturing and a combined investment from investors including

Apollo, Baupost Group and Capital Group, the company secured

$2.5 billion in total financing to complete building its

next-generation silicon-carbide capabilities.

Ostfeld said this addresses Wolfspeed's ( WOLF ) funding needs,

freeing the company to concentrate on running the business

better and pushing shares higher.

News of the fresh cash and new directors drove Wolfspeed's ( WOLF )

shares up last week.

Ostfeld, who has served on a variety of public company

boards, said he believes Wolfspeed ( WOLF ) management shares the hedge

fund's sense of urgency to boost performance and the share

price.

The hedge fund welcomed Wolfspeed's ( WOLF ) two new directors.

Investment banker Woody Young, one of the new directors, joined

Frontier Communications' board in February where Jana

had also pushed for a sale. Last month telecom giant Verizon

made a bid for Frontier and investors will vote on the

deal next month.