CG Power semiconductor arm's JV partner sees no component supply disruption
This story was originally published at 17:58 IST on 6 June 2025
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NEW DELHI – CG Power and Industrial Solutions Ltd. Friday said its semiconductor manufacturing subsidiary CG Semi, a joint venture of CG Power, Japan-based Renesas Electronics Corp., and Thailand-based Starts Microelectronics (Thailand) Co., will continue to receive full support from Renesas Electronics. In a stock exchange filing, the company issued a clarification on a news report in The Economic Times Friday which had said a likely bankruptcy filing by US-based silicon carbide wafer maker Wolfspeed would disrupt supplies to Renesas Electronics. The Japan-based company has a long-term $2-billion silicon carbide supply agreement with Wolfspeed.
CG Power said that according to clarifications received from Renesas Electronics, the latter does "not anticipate any global supply chain disruptions arising from its relationship with Wolfspeed, as implied in the article".
According to the news report, Renesas Electronics has already made advance payments under its contract with Wolfspeed and "risks a financial setback besides supply disruption". It said CG Power holds 92.3% stake in the joint venture, and Renesas Electronics holds only 6.8%.
CG Power said in Friday's filing that while Renesas Electronics cannot comment on Wolfspeed's financial position, it believes the situation "will not hamper Renesas's ability to continue supporting the JV project". CG Power also said "the situation involving Wolfspeed will have no impact on CG Semi's production, operations, or our relationships".
Friday, shares of CG Power ended 2.1% lower at INR 681.60 on the National Stock Exchange. End
Reported by Rajesh Gajra
Edited by Rajeev Pai
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