[News] Power Semiconductor Giants amid Struggles: 8,800+ Layoffs as Market Slows and China Emerges

Once a rising star alongside AI chips, power semiconductors are now feeling the heat from a sluggish EV market. According to ijiwei, citing Nikkei, major players are slashing jobs and pushing back investments, with layoffs topping 8,800.

Power semiconductors, vital for EV range and home appliance efficiency, have spurred major investments from giants. However, as per ijiwei, Japan’s Renesas plans to cut less than 5% (about 1,050 people) of its 21,000 positions in Japan and overseas, while also postponing mass production at its Kofu plant, initially set for early 2025.

The story has not ended here. Germany’s Infineon, the leading global supplier of power semiconductors which opens the world’s largest 200mm silicon carbide (SiC) in Malaysia in 2024, announced its plan to cut 1,400 jobs worldwide while relocating another 1,400 positions to lower costs, as noted by Reuters.

Infineon’s European peer, STMicroelectronics, also plans to reduce its workforce by up to 3,000 employees, or roughly 6%, through early retirements and attrition, according to Bloomberg.

Meanwhile, Onsemi, headquartered in the U.S., is restructuring to cut operational costs, including laying off about 2,400 employees across all divisions in 2025, according to telecomlead. As of December 31, 2024, the company employed nearly 26,400 full-time staff and around 90 part-time and temporary workers.

The downturn is also hitting suppliers—U.S.-based Wolfspeed is laying off 1,000 employees, about 20% of its workforce, a report from the Carolina Journal suggests. The company produces wide-bandgap semiconductors, specializing in silicon carbide and gallium nitride materials, including microchips, the report notes.

China’s Rise: A Growing Threat

The Nikkei report highlights that the challenges faced by power semiconductor giants may stem from rising competition in China. For example, BYD, which previously sourced EV power semiconductors from companies like Renesas, began large-scale production at its own facilities in early 2024. Additionally, CanSemi Technology in China has also started mass production of high-performance power semiconductors, as per Nikkei.

It is worth noting that with the U.S. restricting advanced chipmaking equipment exports to China, manufacturers there are acquiring gear outside these restrictions, focusing on areas like power semiconductors, according to Nikkei.

Therefore, Japanese firms are reportedly teaming up to alleviate their financial burdens amid slow market demand and rising competition. Nikkei notes that Toshiba and Rohm committing 380 billion yen ($2.54 billion) for production, while Fuji Electric and Denso plan to invest around 210 billion yen.

Read more

• [News] European Chip Giants NXP and STMicroelectronics Plan Layoffs Amid Market Downturn
• [News] STMicroelectronics and Onsemi Struggle Amid Market Downturn, Cutting Thousands of Jobs

(Photo credit: Renesas)