Wolfspeed, a US-based silicon carbide (SiC) wafer maker, reported in an SEC filing that its ability to continue operations is in doubt, hinting at possible bankruptcy. Renesas Electronics of Japan has a $2 billion long-term agreement with the company for SiC wafer supply. Advance payments that have already been made towards this put Renesas at risk of financial loss. The Wolfspeed situation can disrupt wafer supplies globally, in Japan, China, and India.
Additionally, CG Power is building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, India. This is a facility that banks on demand from Renesas, meaning that if Renesas is impacted, CG Power could be collateral damage. CG Power holds a 92.3% stake in the joint venture OSAT, while Renesas holds a 6.8% stake. Renesas has reportedly halted its in-house SiC chip production, post the SEC filing.
In the public space, both companies have displayed confidence. CG Power filed a statement with the BSE (Bombay Stock Exchange), recording that Renesas remains committed to their OSAT joint venture despite Wolfspeed’s situation. Renesas has confirmed that the Wolfspeed problems will not affect its OSAT operations in India or globally. The expectation is for the OSAT facility to start pilot production by mid-2026, with mass production targeted for 2027. Beyond this joint venture, Renesas is also exploring additional partnerships and opportunities to expand in India.
