Japanese chipmaker Renesas has said that the situation involving Wolfspeed will have "no impact" on its OSAT project in India.
Reports of a likely bankruptcy filing by the US-based silicon carbide (SiC) wafer maker have been sending shockwaves through the global semiconductor industry with experts suggesting that it could impact Murugappa group-owned CG Power's upcoming outsourced semiconductor assembly and test facility (OSAT) in Sanand.
"We would like to clarify that the situation involving Wolfspeed will have no impact on the OSAT project, including its production, operations, or the relationship between Renesas and CG Power," a Renesas spokesperson said in a statement to ET.
Wolfspeed, in a recent filing with the US Securities and Exchange Commission (SEC), said “substantial doubt exists” about its ability to continue as a going concern.
Japan’s Renesas Electronics, CG Power’s partner for the project, has a long-term $2-billion SiC wafer supply agreement with Wolfspeed, which is now reportedly on the brink of default. Since Renesas has already made advance payments under the contract, experts had told ET that it risks a financial setback besides supply disruptions. They said CG Power’s OSAT facility, which was betting on demand from Renesas, may face headwinds as a result.
However, Renesas in its statement said that while it does not comment on the financial situation of Wolfspeed, it said it will not hamper its ability to continue supporting the JV project. Additionally, it said that it does not plan to produce SiC devices under the OSAT joint venture in India.
"India remains a key focus market for us, and Renesas is committed to supporting the ‘Make in India’ initiative and continuing our full support of the OSAT joint venture," the spokesperson said. "Therefore, we do not anticipate any global supply chain disruptions arising from our relationship with Wolfspeed."
CG Power holds a majority 92.3% stake in the joint venture OSAT, with Renesas holding 6.8%.
In an interview with ET in May, Renesas global CEO Hidetoshi Shibata said he expects the Sanand facility to roll out its first chip from a pilot production line by mid-2026.
The Rs 7,600-crore plant is slated to start mass production in 2027, he said, adding that Renesas is also in talks with other potential Indian partners to expand its presence in the country at various levels.
Reports of a likely bankruptcy filing by the US-based silicon carbide (SiC) wafer maker have been sending shockwaves through the global semiconductor industry with experts suggesting that it could impact Murugappa group-owned CG Power's upcoming outsourced semiconductor assembly and test facility (OSAT) in Sanand.
"We would like to clarify that the situation involving Wolfspeed will have no impact on the OSAT project, including its production, operations, or the relationship between Renesas and CG Power," a Renesas spokesperson said in a statement to ET.
Wolfspeed, in a recent filing with the US Securities and Exchange Commission (SEC), said “substantial doubt exists” about its ability to continue as a going concern.
Japan’s Renesas Electronics, CG Power’s partner for the project, has a long-term $2-billion SiC wafer supply agreement with Wolfspeed, which is now reportedly on the brink of default. Since Renesas has already made advance payments under the contract, experts had told ET that it risks a financial setback besides supply disruptions. They said CG Power’s OSAT facility, which was betting on demand from Renesas, may face headwinds as a result.
However, Renesas in its statement said that while it does not comment on the financial situation of Wolfspeed, it said it will not hamper its ability to continue supporting the JV project. Additionally, it said that it does not plan to produce SiC devices under the OSAT joint venture in India.
"India remains a key focus market for us, and Renesas is committed to supporting the ‘Make in India’ initiative and continuing our full support of the OSAT joint venture," the spokesperson said. "Therefore, we do not anticipate any global supply chain disruptions arising from our relationship with Wolfspeed."
CG Power holds a majority 92.3% stake in the joint venture OSAT, with Renesas holding 6.8%.
In an interview with ET in May, Renesas global CEO Hidetoshi Shibata said he expects the Sanand facility to roll out its first chip from a pilot production line by mid-2026.
The Rs 7,600-crore plant is slated to start mass production in 2027, he said, adding that Renesas is also in talks with other potential Indian partners to expand its presence in the country at various levels.
