Latest news with #Renesas
The Mainichi
11 hours ago
- Automotive
- The Mainichi
Japan chipmaker Renesas postpones achieving 2030 sales goal by 5 yrs
TOKYO (Kyodo) -- Japanese chipmaker Renesas Electronics Corp. said Thursday it will push back its target of achieving sales of over $20 billion in 2030 by five years in the face of stiff competition from Chinese rivals. The goal is to more than double its sales of 1.35 trillion yen ($9.3 billion) in 2024. Also, Renesas, a major maker of automobile chips, now aims to boost its market capitalization sixfold by 2035, instead of the previously targeted 2030, Renesas CEO Hidetoshi Shibata said at a meeting with investors. "The environment surrounding us has significantly changed. It is not easy now to face off squarely against Chinese firms and beat them," Shibata said. Renesas sees Chinese companies improving their manufacturing skills and technology as they have been facing U.S. export restrictions amid the U.S.-China chip war. On Monday, the company said it expects a loss of about 250 billion yen in the first six months of this year, related to its restructuring support for a U.S. business partner, Wolfspeed Inc. Wolfspeed has suspended the development of silicon carbide wafers for next-generation power semiconductors, which will be used in electric vehicles, among others, even as the U.S. company agreed to supply the wafers to Renesas.
Japan Today
2 days ago
- Automotive
- Japan Today
Japan chipmaker Renesas postpones achieving 2030 sales goal by 5 years
Japanese chipmaker Renesas Electronics Corp said Thursday it will push back its target of achieving sales of over $20 billion in 2030 by five years in the face of stiff competition from Chinese rivals. The goal is to more than double its sales of 1.35 trillion yen in 2024. Also, Renesas, a major maker of automobile chips, now aims to boost its market capitalization sixfold by 2035, instead of the previously targeted 2030, Renesas CEO Hidetoshi Shibata said at a meeting with investors. "The environment surrounding us has significantly changed. It is not easy now to face off squarely against Chinese firms and beat them," Shibata said. Renesas sees Chinese companies improving their manufacturing skills and technology as they have been facing U.S. export restrictions amid the U.S.-China chip war. On Monday, the company said it expects a loss of about 250 billion yen in the first six months of this year, related to its restructuring support for a U.S. business partner, Wolfspeed Inc. Wolfspeed has suspended the development of silicon carbide wafers for next-generation power semiconductors, which will be used in electric vehicles, among others, even as the U.S. company agreed to supply the wafers to Renesas. © KYODO
Nikkei Asia
2 days ago
- Automotive
- Nikkei Asia
Renesas pushes back sales target 5 years after failed bet on power chips
Renesas has ended development of silicon carbide power semiconductors, which it had hoped would become a growth driver. (Source photos by Nikkei) RYO MUKANO TOKYO -- Renesas Electronics on Thursday pushed back its 2030 sales and market capitalization targets by five years, reworking its growth strategy after a slowdown in the electric vehicle market forced an about-face on its plans for power semiconductors. The Japanese chipmaker had in 2022 set goals of roughly doubling its sales to $20 billion and growing its valuation roughly sixfold to over 10 trillion yen (about $70 billion at current rates) by 2030. In a briefing, the company said it would move that timeframe back to 2035. Its shares dropped on the news, sinking 12% on Thursday to close at 1,735.5 yen.
Yahoo
5 days ago
- Business
- Yahoo
Why Wolfspeed Plunged Today
Wolfspeed said it plans to file for bankruptcy today. The company offers a cautionary tale about investing lots of money in assets before revenues come in. However, it appears equity holders will not be totally wiped out. 10 stocks we like better than Wolfspeed › Shares of silicon carbide chip manufacturer Wolfspeed (NYSE: WOLF) sank on Monday, falling 34.4% as of 12:18 p.m. ET. Wolfspeed issued a press release today noting it plans to declare Chapter 11 bankruptcy in order to restructure its significant debt load. This move had been telegraphed earlier in May, as Wolfspeed ran into funding struggles earlier this year when the government didn't follow through on an expected CHIPS Act subsidy. But while many bankruptcies lead to a "zero," it appears equity holders will at least retain a shred of the company going forward. Under the terms of the announced restructuring plan, Wolfspeed will: Receive $275 million of new convertible notes, bought by some of its existing current note investors. That will pay off $250 million of senior secured notes at a 9.75% premium. Most consequentially, Wolfspeed will convert $5.2 billion in existing convertible notes and a $2 billion prepayment from Japanese chipmaker Renesas into just $500 million in new senior notes, 95% of new equity, and warrants. Existing equity holders will have their shares cancelled, but receive 3% to 5% of the new equity. With these transactions, Wolfspeed will reduce its debt load by about 70%, or $4.6 billion, and interest payments by 60%. Wolfspeed had invested heavily in building next-generation silicon carbide (SiC) chips, which is still supposed to be a high-growth market niche. That being said, the main use case for SiC chips in electric vehicles has slowed down markedly, which is likely the main reason Wolfspeed wasn't able to generate the expected amount of revenue and profit to cover its interest payments and pay down debt. However, investors may want to take a look at the restructured company once it emerges from bankruptcy, which is forecast by the end of the third quarter of 2025. SiC should continue to grow as more high-voltage applications emerge in EVs, electric infrastructure, and now artificial intelligence (AI) data centers. Going forward, Wolfspeed will have a lower debt burden, and may eventually see its next-generation SiC manufacturing capabilities find favor in the market. As of now, however, investors may want to see how the dust settles after all these transactions are said and done before diving in. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Billy Duberstein and/or his clients has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Plunged Today was originally published by The Motley Fool
Bloomberg
5 days ago
- Business
- Bloomberg
Wolfspeed Plans Bankruptcy After Clinching Deal With Creditors
By , Jonathan Randles, and Steven Church Save Wolfspeed Inc. is planning to file for bankruptcy by July 1 with a deal to slash its debt by about $4.6 billion and hand over control to convertible noteholders. The chipmaker, caught in President Donald Trump's push to reshape Biden-era tech subsidies, said late Sunday it reached a restructuring agreement with a majority of its creditors and Renesas Electronics Corp., a major customer based in Japan, to cut its debt by 70% and reduce annual interest expenses by 60%.
