Citing pressure from Chinese rivals and lower electric vehicle (EV) sales, Japanese silicon carbide (SiC) vendor JS Foundry filed for bankruptcy.
This follows the bankruptcy of SiC leader Wolfspeed, which cited similar concerns in its filings.
JS Foundry tried to make deals on collaboration for SiC technology but apparently those deals did not come quick enough.
Wolfspeed, which plans to reduce its debt by 70% and while reducing it, cut the annual total cost interest payments by about 60%, previously reported facing pressure from Chinese vendors in the market, overspending on new facilities and the weaker than expected EV and renewable energy sectors.
The foundry was backed by the Japanese government and employs 550 people.
As a result of Wolfspeed’s bankruptcy, Renesas, which signed a long-term agreement with Wolfspeed, strategically said it will abandon the SiC market.
While the SiC market appears to be undergoing a massive shift as Chinese vendors will likely lead the market in the foreseeable future, the EV market is not going away and that means opportunities will exist for new vendors or old vendors emerging from bankruptcy to still play a role.
