Reports of a potential Chapter 11 bankruptcy of the SiC specialist Wolfspeed are pressuring Japanese manufacturers like Renesas and Rohm to adjust their strategies in the SiC sector, according to analysts. The increasing competition from Chinese providers also plays a role.

Strategy Adjustments SiC Strategies Under Pressure: Wolfspeed Rumors Unsettle Renesas

2025-06-02 From Susanne Braun | Translated by AI 1 min Reading Time

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Reports of a potential Chapter 11 bankruptcy of the SiC specialist Wolfspeed are pressuring Japanese manufacturers like Renesas and Rohm to adjust their strategies in the SiC sector, according to analysts. The increasing competition from Chinese providers also plays a role.

A silicon carbide wafer.(Image: Sumitomo Electric) — A silicon carbide wafer.
(Image: Sumitomo Electric)

After reports that the power semiconductor and SiC wafer manufacturer Wolfspeed is preparing a Chapter 11 bankruptcy filing, the company's shares have lost more than 60 percent of their value (as of May 2025). However, confirmations or new information on the status of the proceedings are not yet available.

According to reports, Wolfspeed will file for Chapter 11 bankruptcy. (Image:Wolfspeed)

If the company were to file the application, production could continue, but analysts point to strategic risks for partner companies. Renesas, in particular, could be affected, according to analysts from the Nikkan medium (via Trendforce). The Japanese manufacturer had concluded a ten-year supply agreement for SiC wafers with Wolfspeed in 2023, accompanied by a prepayment of two billion US dollars. In the event of bankruptcy, a write-down of this amount is likely, according to the Japanese medium Nikkan.

Competition from China

Renesas originally planned mass production of its own SiC power semiconductors at the Takasaki site for 2025, using wafers that were to be sourced from Wolfspeed. According to reports from Nikkan, the production start has already been delayed, reducing short-term risks. However, the supply situation remains uncertain in the medium to long term.

Other Japanese manufacturers like Rohm or Fuji also need to rethink their SiC strategies, according to analysts. The reason is primarily the increasing price pressure from Chinese providers. According to industry insiders, they have made significant progress not only in devices and wafers but also in manufacturing equipment.

According to a Nikkan report from February 2025, Chinese suppliers are now offering 6-inch SiC wafers for under 500 US dollars. Just a few years ago, the price for Wolfspeed wafers was around 1,500 US dollars. The editorial team of ELEKTRONIKPRAXIS had already analyzed the rise of the Chinese SiC industry in the summer of 2024. (sb)

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