Wolfspeed in Trouble, Navitas Soars—Big Shifts Coming for SiC?

[karin623]

The silicon carbide (SiC) market is going through some serious shake-ups. Wolfspeed, once the dominant SiC wafer supplier, is now facing bankruptcy—after years of capacity bets and a brutal price war with China’s “red supply chain.” On the other hand, Navitas has seen its stock surge 2.5x as investors bet on U.S.-aligned SiC players. What’s driving this sudden shift? In a word: NVIDIA.

In a recent exclusive interview, J.H. Shyu of Taiwan’s Episil shared some fascinating insights. Turns out, NVIDIA’s new 800V architecture for AI servers is creating huge demand for SiC-based power devices. Compared to EVs, where SiC adoption has been more gradual, AI data centers need far better power efficiency—at scale and fast. SiC’s high-voltage, high-frequency strengths are now in the spotlight.

This is already starting to reshape the global SiC ecosystem. Taiwan’s foundries, who were previously cautious about SiC, are now ramping up. U.S. fabless players are also looking to diversify away from China-linked supply and are finding new Taiwanese partners.

There’s also buzz that Wolfspeed’s assets might get snapped up soon—possibly by U.S. or Taiwanese buyers—as the AI-driven SiC market heats up.

If you follow power semis and SiC (like many here on SemiWiki), this article is definitely worth a read. The AI boom is clearly becoming a new driver for SiC demand, and it’s happening faster than a lot of folks expected.

Full story here: https://cwnewsroom.substack.com/p/exclusive-episils-wolfspeeds-navitas-nvidia-sic

 

[Paul2]

The AI boom is clearly becoming a new driver for SiC demand

No it doesn't, comparatively to the applications where SiCs physical advantages make it the only alternative to silicon, IT SMPS is still very tiny.

The data from Yolo Development is grossly incorrect. The grid, and solar, and large motor drives still eat more wafers than IT, and automotive combined, because SiC advantage there for 1200V+ voltages is insurmountable.

The natural opponent of SiC in automotive is high end silicon switches which don't need to beat SiC voltage tolerance there (only 600V-1000V needed)

Mainland China is the biggest electric car market, bigger than the rest of the world combined, and they mostly go for SiC only on flagship models, and they came to the point where a high-end Si IGBT is now closing on SiC in efficiency in mid-range.

 

[benb]

This was an interesting read. I like the approach to reporting Tech Taiwan takes.

My take is that it's been a long time since the semiconductor industry had a player like China, with no profit sensitivity, with the only goal market share. Highly leveraged semiconductor companies, like Wolfspeed, will always be the victims in this environment. It's a lesson, but I don't think the lesson is being absorbed.

The article makes reference to TSMC historical success investing in downturns, at the time that IDMs pull back, as an analogy for the SiC current market condition. That's a bit of a naive assessment. As can be seen by Wolfspeed bankruptcy, taking on risk isn't enough; you need to be able to withstand years of low prices too.

 

[Paul2]

The article makes reference to TSMC historical success investing in downturns, at the time that IDMs pull back, as an analogy for the SiC current market condition. That's a bit of a naive assessment. As can be seen by Wolfspeed bankruptcy, taking on risk isn't enough; you need to be able to withstand years of low prices too.

Mainland's SiC companies are by the way nowhere near the market leaders. It's Wolfspeed's very profligate spending on growth stroked by financial market's exuberance about trendy stuff, which led them there.

 

[Barnsley]

https://www.businesswire.com/news/h...estructuring-Support-Agreement-with-Wolfspeed

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE: 6723, "Renesas"), a premier supplier of advanced semiconductor solutions, today announced that it has entered into a Restructuring Support Agreement (the "Restructuring Support Agreement") with Wolfspeed, Inc. (NYSE: WOLF, "Wolfspeed") and its principal creditors for the financial restructuring of Wolfspeed. As a result, Renesas expects to record a loss as described below.

1. Details of Loss
As announced in July 2023, Renesas entered into the silicon carbide wafer supply agreement with Wolfspeed, and through Renesas’ wholly owned subsidiary in the United States, it provided a deposit (the "Deposit") of US$2 billion (approximately 292.0 billion yen) to Wolfspeed. In October 2024, Renesas and Wolfspeed amended their agreement and increased the outstanding principal amount of the Deposit to US$2.062 billion (approximately 301.1 billion yen).

Subsequently, Wolfspeed has experienced financial challenges. On May 8, 2025, during its quarterly earnings call, Wolfspeed disclosed that to achieve its stated goal of strengthening its balance sheet, it may implement a transaction through an in-court solution. Due to Wolfspeed’s contemplation of an in-court option, Wolfspeed included required going concern language in the footnotes to its financial statements for the quarterly period ended March 30, 2025.

In response to this situation, Renesas has been engaging in discussions with Wolfspeed and today entered into the Restructuring Support Agreement among Wolfspeed and its principal creditors, pursuant to which Renesas agreed to, among other things, convert the Deposit of US$2.062 billion into convertible notes, common stock, and warrants issued by Wolfspeed as follows (the “Restructuring”).

1. Wolfspeed convertible notes: US$204 million (approximately 29.8 billion yen) in aggregate principal amount, convertible to Wolfspeed common stock, maturing in June 2031. These notes are convertible into 13.6% of Wolfspeed’s total issued shares on a non-diluted basis at the time of the completion of the Restructuring. On a fully diluted basis, and prior to the exercise of the warrants to be granted to Renesas, this corresponds to 11.8%.
2. Wolfspeed common stock: equivalent to 38.7% (17.9% on a fully diluted basis, prior to Renesas warrants exercise) of the total number of issued shares of Wolfspeed at the completion of the Restructuring.
3. Wolfspeed warrants: equivalent to 5% (on a fully diluted basis) of the total number of issued shares of Wolfspeed at the completion of the Restructuring.

The Restructuring is expected to be consummated through proceedings under Chapter 11 of the U.S. Bankruptcy Code. It is expected that Wolfspeed will file a petition with the court to initiate such proceedings in the near future. The Restructuring is expected to become effective by the end of September 2025, subject to court approval of the restructuring plan. If the necessary regulatory approvals have not been obtained by the time the Restructuring takes effect, Renesas will hold rights to instruments with equivalent economic value to Wolfspeed’s convertible notes, common stock, and warrants until those approvals are received.

In connection with the signing of the Restructuring Support Agreement, Renesas expects to record a loss on the deposited receivables related to the Deposit in its consolidated financial statements. Although the timing and amount of such loss have not been determined at this time, Renesas believes that there is a possibility of recording a loss of approximately 250 billion yen (converted at an average exchange rate of 150 yen to the dollar during the period) in the consolidated financial statements for the six months ending June 30, 2025. Please note that this amount is an estimate calculated by Renesas’ internal analysis based on the currently available information and may increase or decrease due to various factors. The definitive timing and amount of the loss to be recorded will be determined in consultation with Renesas’ auditor and will be announced once it is determined.

 

[tonyget]

Navitas has seen its stock surge 2.5x as investors bet on U.S.-aligned SiC players.

Isn't Navitas GaN player？

 

[Claudio DD]

The silicon carbide (SiC) market is going through some serious shake-ups. Wolfspeed, once the dominant SiC wafer supplier, is now facing bankruptcy—after years of capacity bets and a brutal price war with China’s “red supply chain.” On the other hand, Navitas has seen its stock surge 2.5x as investors bet on U.S.-aligned SiC players. What’s driving this sudden shift? In a word: NVIDIA.

In a recent exclusive interview, J.H. Shyu of Taiwan’s Episil shared some fascinating insights. Turns out, NVIDIA’s new 800V architecture for AI servers is creating huge demand for SiC-based power devices. Compared to EVs, where SiC adoption has been more gradual, AI data centers need far better power efficiency—at scale and fast. SiC’s high-voltage, high-frequency strengths are now in the spotlight.

This is already starting to reshape the global SiC ecosystem. Taiwan’s foundries, who were previously cautious about SiC, are now ramping up. U.S. fabless players are also looking to diversify away from China-linked supply and are finding new Taiwanese partners.

There’s also buzz that Wolfspeed’s assets might get snapped up soon—possibly by U.S. or Taiwanese buyers—as the AI-driven SiC market heats up.

If you follow power semis and SiC (like many here on SemiWiki), this article is definitely worth a read. The AI boom is clearly becoming a new driver for SiC demand, and it’s happening faster than a lot of folks expected.

Full story here: https://cwnewsroom.substack.com/p/exclusive-episils-wolfspeeds-navitas-nvidia-sic

as if expansion plan of ONSEMI in Roznov does not count, or the two Fab of STMicroelectronics, one in Catania and one in China Chongqing (in JV) as far as I know also the new refurbished Fab of BOSCH in Roseville is SiC, and this is what comes in my mind in five minutes - way to go for the "taiwanese partners"

 

[cheesehead]

as if expansion plan of ONSEMI in Roznov does not count, or the two Fab of STMicroelectronics, one in Catania and one in China Chongqing (in JV) as far as I know also the new refurbished Fab of BOSCH in Roseville is SiC, and this is what comes in my mind in five minutes - way to go for the "taiwanese partners"

don´t forget about Infineon expansion in Dresden (DE) and Villach (AT). There definitely is too much capacity in the market compared to current demand.

Isn't Navitas GaN player？

They acquired Genesic in 2022, so they also have SiC offering

 

[Claudio DD]

don´t forget about Infineon expansion in Dresden (DE) and Villach (AT). There definitely is too much capacity in the market compared to current demand.




They acquired Genesic in 2022, so they also have SiC offering

I totally agree with overcapacity not only for SiC but for overall market, the companies which I monitor for my personal model are at 70% since many quarters with the significant exception of one company mentioned here, Renesas, who published quite dire data in their investor call (load well below 50%)