[News] Renesas Reportedly Abandons SiC Production Plan Amid Chinese Price War, Wolfspeed Uncertainty

According to a report from MoneyDJ, citing Nikkei, slowing growth in the electric vehicle (EV) market—coupled with a supply glut driven by increased production from Chinese manufacturers—has led to falling prices and reportedly prompted Japanese semiconductor giant Renesas Electronics to abandon its plans to produce SiC power semiconductors for EVs.

Nikkei notes that Renesas had initially planned to begin manufacturing SiC power chips for EVs in early 2025 at its Takasaki plant in Gunma Prefecture. However, the company has since disbanded the SiC team at the Takasaki facility.

Nikkei adds that price competition with Chinese rivals is expected to intensify over the medium to long term, making it difficult for Renesas—as a latecomer—to generate quick profits from SiC chip production.

According to the latest research from TrendForce, weakening demand in the automotive and industrial sectors has slowed shipment growth for SiC substrates in 2024. Simultaneously, intensifying competition and sharp price declines have driven global revenue for N-type SiC substrates down 9% year-over-year to USD1.04 billion.

Notably, Chinese vendors TanKeBlue and SICC have rapidly risen to prominence, capturing 17.3% and 17.1% of the global market share, respectively, as TrendForce points out.

On the other hand, as highlighted by Nikkan Kogyo Shimbun, Renesas could face repercussions due to its 10-year SiC wafer supply agreement with Wolfspeed, signed in 2023 with a USD 2 billion upfront payment. Should Wolfspeed file for Chapter 11 bankruptcy, Renesas may be forced to recognize impairment losses, the report suggests.

Industry sources indicate that, under pressure from Wolfspeed’s financial troubles and intensifying competition from Chinese rivals, Renesas has reportedly decided to halt in-house production of SiC power chips. However, the company does not plan to exit the market entirely. Instead, it may continue to develop its own SiC designs while outsourcing manufacturing to foundries, then selling the finished products under its own brand.

Read more

• [News] Wolfspeed’s Rumored Bankruptcy Puts Renesas’ $2B SiC Supply Deal at Risk
• Global SiC Substrate Revenue Declines 9% in 2024; Long-Term Demand Remains Strong as 8-Inch Roadmap Gains Momentum, Says TrendForce

(Photo credit: Renesas Electronics)