Renesas has abandoned mass production of next-generation SiC power semiconductors for EVs, and the rapid deterioration of market conditions and the rise of Chinese players are behind the decision.
🟦 Renesas Abandons Mass Production of SiC Power Semiconductors at Takasaki Plant in Gunma Prefecture
Renesas Electronics has abandoned its plan to start mass production of silicon carbide (SiC) power semiconductors at its Takasaki Plant in Gunma Prefecture in early 2025. SiC is a next-generation material used in EV drive components, and is more resistant to high voltages and currents than conventional silicon, and has the characteristics of greatly improving the driving range and power efficiency of vehicles.
Renesas continues to produce silicon power semiconductors at its Takasaki and Kofu plants, but some products have also begun to shrink.
🟦 Rapid expansion of Chinese market and unexpected slowdown in EV market
Renesas’ decision to withdraw is due to the double whammy of slowing demand and oversupply. First, the EV market is sluggish. In Europe, the end of subsidies, and in China, EV sales growth was lower than expected due to the economic slowdown.
On the other hand, Chinese manufacturers are rapidly expanding the mass production of SiC products with government support. The rapid increase in the supply of wafers and chips has led to an oversupply in the market, and the price of SiC products has continued to fall. In addition, Chinese automakers are switching to local procurement of semiconductors, making it difficult for Japan, European and American automakers to secure market share.
🟦 Summary
Renesas has abandoned plans to mass-produce SiC products, which are next-generation power semiconductors for EVs. The decision was made by an unexpected slowdown in the EV market and a drop in prices due to China’s aggressive efforts to increase production.
Renesas took on the challenge of mass production of SiC while utilizing its existing 6-inch line, but it may not have been able to overcome the technical difficulties and yield barriers.
