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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.