Shifts in the Silicon Carbide Industry: ROHM, Wolfspeed, and Sumitomo Electric Restructure Strategies
The silicon carbide (SiC) industry is undergoing significant transformations as major players, including ROHM Semiconductor, Wolfspeed, and Sumitomo Electric, adjust their strategies in response to evolving market conditions.
The silicon carbide (SiC) industry is undergoing significant transformations as major players, including ROHM Semiconductor, Wolfspeed, and Sumitomo Electric, adjust their strategies in response to evolving market conditions.
ROHM is restructuring leadership and delaying its SiC production capacity expansion due to financial constraints.
Wolfspeed faces revenue decline and is implementing a $450 million facility shutdown and consolidation plan.
Sumitomo Electric has canceled a ¥30 billion ($205 million USD) investment in a new SiC wafer fab due to weak electric vehicle (EV) demand.
ROHM: Leadership Change and SiC Expansion Delay
Japanese semiconductor giant ROHM announced that Katsumi Higashi will replace Isao Matsumoto as CEO starting April 1, 2025. Matsumoto will assume an advisory role. The leadership transition comes amid financial pressures, with ROHM reporting a ¥6 billion ($41 million USD) net loss for the 2024 fiscal year, marking its first full-year loss since 2012.
ROHM’s 2024 H1 revenue declined 3% year-over-year (YoY) to ¥232 billion ($1.7 billion USD). As a result, the company has reduced its SiC investment budget from ¥510 billion to ¥470-480 billion ($3.2 billion USD). The company also cut its 2024 capex to ¥150 billion ($1.05 billion USD) and plans to reduce 2025 capex below ¥100 billion ($700 million USD).
ROHM originally planned to reach ¥110 billion ($770 million USD) in SiC revenue by FY2025, but this milestone has been postponed to 2026-2027 due to slower-than-expected demand in the EV and industrial sectors.
SiC Expansion:
ROHM is transitioning to 8-inch SiC wafers, with its Fukuoka Chikugo fab slated for mass production in 2025.
The Miyazaki 2nd fab is also expected to go live in 2025.
The company initially aimed to increase SiC output to 6.5× 2021 levels by 2025, but this timeline is now extended by a year.
Technology Development:
ROHM is focusing on next-gen SiC MOSFETs and power modules, such as the TRCDRIVE pack™, which integrates 4th-gen SiC MOSFETs, improving power density by 1.5× and simplifying design integration.
Wolfspeed: Financial Struggles, Facility Closures, and Government Support
U.S.-based SiC leader Wolfspeed recently reported a 1.37% YoY revenue decline to $195 million for Q1 FY2025. The company also posted a net loss of $282 million, despite narrowing its deficit by 28.68% YoY.
To mitigate financial losses, Wolfspeed launched a $450 million facility shutdown and consolidation initiative, which includes:
Closing its 150mm SiC wafer fab in Durham, North Carolina.
Selling its Dallas-area SiC epitaxy facility.
Suspending plans for a new fab in Saarland, Germany.
However, Wolfspeed has secured $750 million in direct funding from the U.S. Department of Commerce to support the expansion of its North Carolina and New York fabs.
Sumitomo Electric: Cancels New SiC Wafer Fab Amid EV Demand Slump
Sumitomo Electric has scrapped plans to build a ¥30 billion ($205 million USD) SiC wafer manufacturing plant in Takaoka, Toyama Prefecture due to uncertain EV market recovery.
The company originally planned to mass-produce SiC wafers by 2027, with an annual capacity of 180,000 wafers from its Takaoka and Itami fabs.
With the project now canceled, Sumitomo is likely to refocus on other sectors, such as:
Automotive wiring systems
Power cables for renewable energy infrastructure
Optical components for data centers
Market Shift to 8-inch SiC:
Sumitomo may pivot from 6-inch SiC wafers to 8-inch wafers, following industry trends led by STMicroelectronics, Infineon, and Wolfspeed.
8-inch SiC wafer adoption is still limited, with market share below 2% in 2024, but analysts expect this to rise to 20% by 2027.
Conclusion: SiC Market Faces Challenges and Adjustments
Despite rapid growth in AI data centers, EVs, and industrial applications, the SiC industry is undergoing significant restructuring. ROHM, Wolfspeed, and Sumitomo Electric are making strategic shifts in leadership, production, and investment, with a clear industry transition toward 8-inch SiC wafers.
As demand fluctuates, companies that can optimize costs, secure government incentives, and advance SiC technology will emerge stronger in the long term.
