[News] SiC Shake-Up: Toshiba Drops China SICC Deal; Wolfspeed Posts Weak Results Amid Soft Demand

Toshiba recently said that the memorandum of understanding (MOU) signed by its subsidiary, Toshiba Electronic Devices & Storage Corporation, with China’s SICC in August 2025, covering collaboration on silicon carbide (SiC) power semiconductor wafers, was terminated in September 2025 after further discussions between the two firms, according to its press release.

Despite the MOU’s termination, Toshiba had already been purchasing wafers from SICC prior to the agreement and will continue doing so, as highlighted by Nikkei.

While Toshiba did not disclose the reason for its decision, Nikkei, citing sources, indicates that the agreement was ended early out of caution toward deeper cooperation beyond procurement. The company is believed to have reconsidered the partnership from the standpoint of economic security and concerns over potential technology and talent outflow, the report adds, citing sources.

Wolfspeed’s Recovery Efforts Tempered by Weak Demand

While Toshiba’s breakup with SICC underscores shifting dynamics in Asia, U.S. SiC supplier Wolfspeed is facing challenges of its own. According to Reuters, Wolfspeed reported lower first-quarter profit for fiscal 2026, underscoring the challenges the U.S. chipmaker faces as it emerges from bankruptcy and struggles with weak demand.

As Reuters notes, the company had bet heavily on silicon carbide materials for long-term growth, but those gains have been slower to emerge as automakers curb production and delay chip orders. The report adds that Wolfspeed sees near-term headwinds while expanding into new growth areas such as AI data centers, aerospace, and energy storage.

Wolfspeed announced its results for the first quarter of fiscal 2026, reporting consolidated revenue of approximately $197 million, compared with $195 million a year earlier. The company said it expects a sequential decline in revenue for the second quarter, forecasting between $150 million and $190 million. In line with broader industry trends, Wolfspeed noted ongoing market softness that it expects to persist through fiscal 2026.

In 2024, Wolfspeed led the global SiC substrate market with a 34% share, but Chinese rivals TankeBlue and SICC are catching up, each holding 17%, according to TrendForce.

Read more

• [News] Japan’s Power Chip Lead Reportedly Shrinks to 3 Years, Challenged by Chinese Rivals
• [News] Silicon Carbide Battle Rekindled by Industry Giants: Wolfspeed, Samsung Make Waves
• Global SiC Substrate Revenue Declines 9% in 2024; Long-Term Demand Remains Strong as 8-Inch Roadmap Gains Momentum, Says TrendForce

(Photo credit: Wolfspeed)