Recent reports indicate that semiconductor supplier Wolfspeed is preparing to file for bankruptcy within weeks due to an inability to resolve its massive debt issues. This crisis has had a direct impact on Renesas Electronics.
In 2023, Renesas signed a 10-year supply agreement with Wolfspeed for SiC (silicon carbide) wafers and made a $2 billion advance payment. If Wolfspeed ultimately files for bankruptcy, Renesas may face significant impairment losses, further complicating its strategic position.
Renesas originally planned to begin mass production of SiC power semiconductors in 2025 at its Takasaki plant in Gunma Prefecture using Wolfspeed’s SiC wafers. Although unfavorable market conditions led Renesas to delay initial procurement from Wolfspeed in 2024—temporarily reducing risk—the long-term stability of its wafer supply remains uncertain.
Wolfspeed, a key global player in SiC power semiconductors, especially for electric vehicle (EV) applications, had made large-scale investments in SiC wafer production. However, slowing global EV demand and intense competition from Chinese manufacturers have weakened Wolfspeed’s competitive position.
In addition to Renesas, other Japanese semiconductor companies such as ROHM and Fuji Electric are also facing fierce competition from Chinese rivals in the SiC power semiconductor sector.