News: Microelectronics
5 June 2025
Renesas abandoning SiC production plans amid Chinese price war and Wolfspeed uncertainty
According to a report by Nikkei, Renesas Electronics Corp of Tokyo, Japan is abandoning its plans to produce silicon carbide (SiC) power semiconductors for electric vehicles (EVs), due to slowing growth in the EV market — coupled with a supply glut driven by increased production from Chinese manufacturers — that has led to falling prices.
In July 2023, Renesas announced its plans to enter the SiC power device market and begin manufacturing SiC power chips in early 2025 at its Takasaki plant in Gunma Prefecture. However, the firm has since disbanded the SiC team there.
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 by market analyst firm 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 by 9% year-on-year to US$1.04bn. Notably, Chinese vendors TanKeBlue and SICC have rapidly risen to prominence, capturing 17.3% and 17.1% of global market share, respectively.
On the other hand, as highlighted by Nikkan Kogyo Shimbun, Renesas could face repercussions due to its 10-year deal, signed in July 2023 (involving a US$2bn upfront deposit), for Wolfspeed Inc of Durham, NC, USA to supply it with 150mm- and 200mm-diameter SiC substrates and epiwafers. Wolfspeed is said to be preparing to file for Chapter 11 bankruptcy. In this eventuality, Renesas may be forced to recognize impairment losses, the report suggests.
While the pressure from Wolfspeed’s financial troubles and intensifying competition from Chinese rivals has caused Renesas to halt in-house production of SiC power chips, the firm does not plan to exit the market entirely, notes TrendForce. Instead, it may continue to develop its own SiC designs while outsourcing manufacturing to foundries, then sell the finished products under its own brand.
Silicon carbide substrate revenue falls 9% to $1.04bn in 2024, says TrendForce
Renesas and Wolfspeed sign 10-year silicon carbide wafer supply agreement
