CG Power Says Renesas Backs Semiconductor JV Despite Wolfspeed Concern

CG Power and Industrial Solutions Ltd. on Friday clarified that its semiconductor manufacturing joint venture, CG Semi, will continue to receive full backing from Renesas Electronics Corp., despite concerns over potential bankruptcy proceedings involving Wolfspeed, a key silicon carbide supplier to Renesas.

Responding to a report in The Economic Times that flagged possible supply disruptions and financial setbacks to Renesas due to its $2-billion long-term agreement with Wolfspeed, CG Power said Renesas does not anticipate any supply chain issues stemming from the situation.
In a stock exchange filing, CG Power said the Japanese firm has reassured it that the developments around Wolfspeed will not affect the joint venture’s operations, production, or future prospects. The company also pointed out that it holds a 92.3% stake in CG Semi, while Renesas holds 6.8%.