Renesas Electronics Abandons Next-Gen Power Semiconductor Production Plans in Japan
Renesas Electronics has scrapped its plans to produce silicon carbide power semiconductors at its Takasaki plant in Japan, originally set for a 2025 launch, due to declining demand for electric vehicle chips and increased competition from Chinese manufacturers. The company also announced job cuts of up to 5% of its workforce and postponed salary increases, with factory utilization dropping to around 30%. Additionally, production at a new facility in Yamanashi prefecture has been delayed.
Theia Market Signal Identification - AI Assisted
Renesas Electronics has abandoned plans to produce power semiconductors using silicon carbide (SiC) at its Takasaki plant in Japan, which was scheduled for an early 2025 launch. The decision comes amid worsening market conditions for electric vehicle (EV) chips, with declining EV demand and increased production by Chinese competitors.
The SiC market grew only 18% in 2024, falling short of projections, partly due to the end of government subsidies in Europe and an oversupply from Chinese manufacturers. Renesas, facing intense competition, also announced job cuts of up to 5% of its workforce and postponed salary increases due to weak demand, with factory utilization dropping to around 30%. Production of power semiconductors at a new plant in Yamanashi prefecture has also been delayed.
Comments