Renesas to abandon SiC production
Renesas is abandoning plans to produce SiC chips for EVs. according to TrendForce, citing a report by Nikkei,
This move by the Japanese semiconductor firm has apparently been prompted by slow growth in the EV market, coupled with a SiC chip supply glut driven by Chinese manufacturers. It follows news that Renesas' SiC partner Wolfspeed is preparing to file for Chapter 11 bankruptcy within weeks.
In July 2023, Renesas announced its entry to the power SiC market through a ten year partnership with Wolfspeed. The deal included a $2 billion deposit from Renasas to secure supply for both 150mm and 200mm SiC wafers.
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 facility, according to Nikkei.
The latest research from TrendForce, shows weakening demand in the automotive and industrial sectors and slow 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 percent year-over-year to $1.04 billion.
Chinese vendors TanKeBlue and SICC have risen to prominence, capturing 17.3 percent and 17.1 percent of the global market share, respectively. Price competition with Chinese rivals is expected to intensify over the medium to long term, making it more difficult for a late arrival like Renesas to generate profits from SiC chip production.
TrendForce adds that while Renesas has reportedly decided to halt in-house production of SiC power chips, 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.
