Rising costs, fierce rivals, and shifting priorities—Renesas ditches its $2 billion silicon carbide ambitions to refocus on microcontrollers and analogue/power semiconductors, where it leads.
Renesas Electronics Corporation has announced its exit from the silicon carbide (SiC) semiconductor market. The Japanese semiconductor manufacturer had previously planned to begin mass production of SiC power semiconductors by 2025, following a major agreement with US-based Wolfspeed in July 2023. The deal involved a $2 billion deposit for a 10-year supply of 150mm and 200mm SiC wafers.
The SiC initiative was intended to position Renesas within a rapidly expanding market driven by electric vehicles (EVs), renewable energy systems, and industrial technologies. However, the company has now confirmed it will not proceed with these plans, citing evolving market conditions and internal strategic priorities.
Reports predict that a key factor in the decision was the rising competition within the SiC sector. Established players such as STMicroelectronics, Infineon, and ON Semiconductor have made considerable progress, making it more difficult for newcomers to secure a foothold.
Additionally, the significant capital investment required and the risk of delayed returns weighed heavily in the company’s reassessment.
Renesas CEO Hidetoshi Shibata stated that the company would concentrate on areas where it holds clear strengths, particularly in microcontrollers and analogue/power semiconductors.
Wolfspeed CEO Gregg Lowe responded to the news by affirming the company’s commitment to advancing SiC technology, despite the change in partnership.
The withdrawal may impact Wolfspeed’s capacity planning, especially as it prepares to ramp up operations at its new manufacturing facility in North Carolina. At the same time, competitors may see new opportunities to capture market share.
