[News] Wolfspeed Feels Heat as China’s Largest SiC Plant Reportedly Fires Up, Powers 30% Local Supply

As US-based silicon carbide (SiC) giant Wolfspeed reportedly teeters on the brink of bankruptcy amid fierce competition from fast-rising Chinese rivals, China’s largest silicon carbide wafer plant has officially launched production in Wuhan, aiming to supply 30% of the country’s domestic output, according to local media YiCai Global and IT Home.

YiCai reports that on-vehicle testing for one SiC wafer model kicks off as soon as next month, while nearly 10 more models are already in validation. Mass production and deliveries are set to follow shortly after.

IT Home suggests that the plant’s first phase focuses on power devices, boasting a planned annual output of 360,000 6-inch SiC wafers.

On the other hand, YiCai Global adds that this would be enough to support over 1.4 million new energy vehicles, which marks a major step in bolstering China’s supply chain for next-gen EVs. According to the report, China leads in global NEV output, but still imports over 90% of core power chips.

YOFC Advanced Semiconductor invested CNY20 billion (USD2.8 billion) into its SiC wafer plant, which broke ground in September 2023, according to YiCai. IT Home notes the facility is China’s first full-chain SiC cluster—built from the ground up in just 18 months.

The plant seems to be securing a head start, as Li Gang, general manager of the factory, highlighted that the fab’s first wafer already hit a 97% yield, YiCai indicates.

If the plant ramps up smoothly, it could spell more trouble for Wolfspeed, which is reportedly weeks away from bankruptcy. According to the Wall Street Journal and Reuters, burdened by $6.5 billion in debt and facing tariff uncertainties, the SiC giant is under intense pressure. Adding to the shake-up, Wolfspeed named Kevin Speirits interim CFO starting May 30 as it hunts for a permanent replacement amid its financial turmoil, as per Daily Sentinel.

Read more

• [News] Wolfspeed’s Rumored Bankruptcy Puts Renesas’ $2B SiC Supply Deal at Risk
• [News] Wolfspeed Reportedly to File Bankruptcy in Weeks as China’s Aggressive Pricing, Weak Demand Bite

(Photo credit: YOFC)