[News] Renesas: Wolfspeed Woes Won’t Slow Down India JV — No SiC Production in Play

According to ijiwei, citing the Economic Times, Japanese chipmaker Renesas Electronics says its situation with Wolfspeed does not affect its OSAT joint venture with CG Power in India. Renesas also clarifies that it has no plans to produce SiC devices under the OSAT collaboration, the report highlights.

Recent market sources suggest that Wolfspeed’s potential bankruptcy could lead to significant financial losses for Renesas. As the report notes, in 2023, Renesas signed a 10-year SiC wafer supply deal with Wolfspeed, including a USD 2 billion advance payment. If Wolfspeed files for bankruptcy, Renesas may face major impairment losses—sparking concerns over the potential impact on its OSAT joint venture with India’s CG Power.

Renesas Partners with CG Power in Indian OSAT JV

In 2024, Renesas, CG Power, and Thailand-based Stars Microelectronics signed a Joint Venture Agreement to build and operate an OSAT facility in Sanand, Gujarat, as announced in a press release. CG Power will hold a 92.3% stake, with Renesas and Stars Microelectronics owning 6.8% and 0.9%, respectively.

The JV plans to invest INR 7,600 crores over five years and scale capacity to 15 million units per day. It will produce a range of packages—from legacy types like QFN and QFP to advanced ones like FC BGA and FC CSP—serving sectors including automotive, consumer, industrial, and 5G, as noted by its press release.

Notably, according to the Economic Times, Renesas CEO Hidetoshi Shibata expects the Sanand facility to produce its first chip from a pilot line by mid-2026, with mass production starting in 2027. He also emphasizes that Renesas is in talks with other potential Indian partners to further expand its presence in the country, the report adds.

Renesas Reportedly Drops SiC Plans Amid Market Pressures

Previous market sources indicate that Renesas will reportedly abandon its SiC production plan amid uncertainty surrounding Wolfspeed and a growing price war with Chinese rivals. According to MoneyDJ, citing Nikkei, slowing EV demand and a supply glut from increased Chinese output have driven down prices, reportedly prompting Renesas to scrap its plan to produce SiC power semiconductors for EVs.

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

Read more

• [News] Renesas Reportedly Abandons SiC Production Plan Amid Chinese Price War, Wolfspeed Uncertainty
• [News] Wolfspeed’s Rumored Bankruptcy Puts Renesas’ $2B SiC Supply Deal at Risk

(Photo credit: Renesas)