Renesas Electronics Corporation confirmed a loss of ¥235 billion following the financial restructuring of its US-based silicon carbide (SiC) wafer supplier, Wolfspeed, Inc.
The move followed Wolfspeed’s decision to proceed with a bankruptcy reorganisation under Chapter 11 of the US Bankruptcy Code.
The loss stemmed from a $2.062 billion deposit Renesas made to Wolfspeed as part of a long-term wafer supply agreement, initially signed in July 2023 and later amended in October 2024. With Wolfspeed encountering financial distress and signalling potential insolvency during its earnings call in May 2025, Renesas entered into a Restructuring Support Agreement to convert the deposit into equity instruments.
Under the agreement, Renesas will receive:
- $204 million in Wolfspeed convertible notes, maturing in June 2031 and equivalent to 13.6% of Wolfspeed’s issued shares (11.8% fully diluted)
- Wolfspeed common stock amounting to 38.7% (17.9% fully diluted)
- Warrants representing 5% of Wolfspeed shares (on a fully diluted basis)
Renesas noted that the conversion of the deposit to these instruments, while preserving long-term strategic interests, resulted in a significant accounting loss. The finalised ¥235 billion figure was included in Renesas’ consolidated results for the six months ended 30th June 2025, which were reported on 25th July 2025.
Wolfspeed is expected to complete its restructuring by the end of September 2025, pending court approval. Renesas stated that, should regulatory approvals not be secured by then, it would temporarily hold rights to financial instruments offering equivalent economic value.
Despite the scale of the write-down, Renesas reaffirmed that its non-GAAP forecast – covering revenue, gross margin, and operating margin – remains unchanged.
The strategic SiC wafer supply relationship with Wolfspeed remains intact, reinforcing Renesas’ commitment to next-generation semiconductor materials for automotive and industrial power applications.
