Japanese chipmaker Renesas Electronics has scrapped its plan to mass-produce silicon carbide (SiC) power semiconductors, originally set to begin in early 2025 at its Takasaki plant in Gunma Prefecture. The company has also disbanded the dedicated team behind the project.
Market pressures force strategic retreat
According to Nikkei Asia, the move comes amid weakening demand for electric vehicles and growing competition from Chinese manufacturers, many of which are ramping up SiC production with the help of government subsidies. Renesas determined that the business would not be financially viable under current market conditions. The company is also reassessing its broader power semiconductor strategy, but will continue producing silicon-based power devices at its existing sites in Yamanashi and Gunma Prefectures.
Wolfspeed bankruptcy threatens supply chain partnerships
Meanwhile, US-based SiC wafer and substrate provider Wolfspeed is reportedly preparing to file for bankruptcy, triggering concerns across the SiC industry. Renesas, which signed a 10-year SiC wafer supply deal with Wolfspeed in 2023 and paid US$2 billion in advance, could be among the most affected.
The news comes amid slowing global electric vehicle demand and intensifying competition from Chinese SiC players, which has led to falling prices and shrinking technology gaps. Wolfspeed's performance has deteriorated, with mounting debt and weaker sales. In a financial filing submitted to the US Securities and Exchange Commission in early May 2025, the company acknowledged "substantial doubt" about its ability to continue as a going concern. If a bankruptcy filing materializes, Renesas may be forced to write down a significant impairment loss.
Global industry faces widespread restructuring
Renesas's decision reflects a broader pattern affecting established players worldwide. In 2024, BYD Electronics, Silan Micro, and Star Semiconductor broke into the global top ten, while US export controls have proven largely ineffective on SiC manufacturing tools.
The challenges are mounting across the sector. Rohm has posted its first loss in 12 years, and companies like STMicroelectronics, Infineon, and Onsemi are cutting jobs or restructuring operations. These developments underscore the same market pressures that led Renesas to abandon its SiC mass production plans.
Article edited by Jerry Chen
