According to the Economic Times, citing an official statement, Japanese chipmaker Renesas has clarified that ongoing issues with Wolfspeed will have no impact on its OSAT joint venture project in India. "The situation involving Wolfspeed will have no impact on the OSAT project, including production, operations, or the relationship between Renesas and CG Power," adding that it does not plan to produce silicon carbide (SiC) devices under the OSAT collaboration.
It's been warned that Wolfspeed's potential bankruptcy could lead to major financial losses for Renesas. The company reportedly made advance payments of around US$2 billion to Wolfspeed, raising concerns over possible impairment losses. This financial strain may affect Renesas' ability to fully support global projects such as the OSAT facility with India-based CG Power.
CG Power, which holds a 92.3% stake in the OSAT joint venture, recently expanded its semiconductor ambitions by acquiring Renesas' RF components business for US$36 million, marking its entry into chip design. The Wolfspeed issue poses a risk to these plans amid uncertainties over funding and supply stability.
Wolfspeed, a US semiconductor firm specializing in silicon carbide technology, faces severe financial distress with about US$6.5 billion in debt, including a US$1.5 billion loan led by Apollo Global Management. After failing to restructure a large convertible bond due in 2026, the company considered bankruptcy. Junior creditors have proposed a US$600 million refinancing package to avoid bankruptcy and provide working capital.
In July 2023, Wolfspeed and Japan's Renesas Electronics signed a 10-year supply deal, with Renesas placing a US$2 billion deposit for silicon carbide wafers to support its power semiconductor production from 2025. In October 2024, Wolfspeed amended its financial agreement with Renesas, allowing loan interest conversion into principal and asset pledging to secure government grants.
Article edited by Jack Wu
