Renesas Electronics postponed its ambitious financial targets by half a decade after a failed bet on power semiconductors for electric vehicles forced the Japanese chipmaker to scrap its silicon carbide initiative entirely.
The company originally aimed to double sales to $20 billion and increase its market capitalization to over 10 trillion ¥ ($70 billion) by 2030. Those targets now won’t arrive until 2035, Renesas announced Thursday. Shares plunged 12% to close at 1,735.5 ¥.
Renesas disbanded its silicon carbide team at the Takasaki plant in Gunma Prefecture, abandoning plans to manufacture SiC power chips that began in early 2025. The company cited slowing electric vehicle market growth and price competition from Chinese rivals as key factors behind the decision.
The retreat leaves Renesas exposed to potential losses from its 10-year, $2 billion deal with Wolfspeed for SiC substrates, particularly as the U.S. supplier faces financial difficulties and potential bankruptcy filing.
The chipmaker will now focus on traditional microcontrollers, returning to its core business after the electric vehicle pivot proved premature. With current annual revenue around $8.56 billion and a market value of $24 billion, Renesas faces a longer path toward its growth ambitions as the global EV market experiences slowdowns in key regions including the United States.
