Renesas has abandoned plans to enter the SiC market. It was due to begin production this year.
The move may have been precipitated by the expected bankruptcy of Wolfspeed which was to have been Renesas’ supplier of SiC wafers.
In 2023, Renesas paid Wolfspeed an upfront sum of $2 billion to secure ten years’ supply of SiC wafers and it is possible that Renesas will not be able to get it back.
With the slowing in EV sales, demand for SiC chips has reduced while the Chinese chip companies have ramped up production of SiC devices and pushed down prices.
Meanwhile, Chinese car companies, encouraged by domestic political pressure, has increasingly turned to local suppliers
According to Tokyo analysts Fuji Kenzai the SiC chip market was worth $2.69 billion last year having grown 18% y-o-y while expectations were that it would grow 27%.
