Renesas counts the cost of Wolfspeed deal
Renesas says the restructuring agreement just signed with the US SiC chip firm Wolfspeed will result in a significant financial loss, possibly reaching $1.7 billion (250 billion yen) in the consolidated financial statements for the six months ending June 30, 2025.
Renesas says this amount is an estimate and may increase or decrease depending on various factors.
Renesas entered into a SiC wafer supply agreement with Wolfspeed in July 2023, providing a deposit of $2 billion. In October 2024, the two companies amended their agreement and increased the outstanding amount of Renesas' deposit to $2.062 billion.
Since then, Wolfspeed has experienced financial challenges. In May 2025, during its quarterly earnings call, it raised doubts about the company’s ability to continue as a going concern. Now the company has entered into a Restructuring Support Agreement (RSA) with key lenders including Renesas, with which it has agreed to convert the $2.062 billion deposit into convertible notes, common stock, and warrants.
These will comprise: $204 million notes convertible to Wolfspeed common stock, maturing in June 2031; common stock equivalent to 38.7 percent (17.9 percent on a fully diluted basis, prior to Renesas warrants exercise) of all issued Wolfspeed shares on completion of the restructure; and finally warrants equivalent to 5 percent (on a fully diluted basis) of all issued shares on completion of the restructure.
The restructuring, which will be finalised under Chapter 11 of the US Bankruptcy Code, is expected to become effective by the end of September 2025 (subject to court approval of the plan).
If the necessary regulatory approvals have not been obtained by the time the restructuring takes effect, Renesas says it will hold rights to instruments with equivalent economic value to Wolfspeed’s convertible notes, common stock, and warrants until those approvals are received.
