Renesas Abandons SiC Power Chip Production, Disbands Team
Renesas Electronics has officially canceled its plan to begin production of silicon carbide (SiC) power semiconductors, originally scheduled to launch in early 2025 at its Takasaki plant in Gunma Prefecture, Japan.
This strategic shift comes as the market for SiC chips—primarily used in electric vehicles (EVs)—faces mounting pressure. A combination of declining EV demand and a surge in production capacity from Chinese chipmakers has led to a more challenging market environment. Renesas concluded that entering the SiC sector would not be financially sustainable under current conditions.
Earlier this year, Renesas disbanded its SiC production team at the Takasaki facility. CEO Hidetoshi Shibata acknowledged the situation in a February briefing, stating, "We believe the market conditions are extremely severe."
Despite long-term optimism for SiC adoption, recent data from Tokyo-based research firm Fuji Keizai indicates a slowdown. The global SiC market is now projected to grow by only 18% in 2024, reaching ¥391 billion (approx. $2.69 billion USD), significantly lower than the earlier forecast of 27% growth to ¥491.5 billion.
Several factors have contributed to this deceleration. The removal of government subsidies in Europe has dampened EV sales in the region. Meanwhile, increased production output from Chinese fabs has driven down prices for SiC wafers and devices. Additionally, Chinese automakers are ramping up sourcing of domestically produced semiconductor components, further impacting international competition.
Renesas is not alone in confronting the SiC industry's shifting landscape. ROHM posted a net loss for the first time in 12 years in fiscal 2024, attributed to its increased investment in SiC technology. STMicroelectronics, known for its SiC solutions in EV applications including Tesla, has seen its stock price plummet by over 50% since the beginning of 2024. In the U.S., Wolfspeed—an established SiC chip innovator—is reportedly preparing to file for bankruptcy protection.
