CG Power’s chip plans rocked by turmoil at wafer company Wolfspeed

Reports of a likely bankruptcy filing by US-based silicon carbide (SiC) wafer maker Wolfspeed are sending shockwaves through the global semiconductor industry and could impact Murugappa group-owned CG Power‘s upcoming outsourced semiconductor assembly and test facility (OSAT) in Sanand, experts told ET.

Japan’s Renesas Electronics, CG Power’s partner for the project, has a long-term $2-billion SiC wafer supply agreement with Wolfspeed, which is now reportedly on the brink of default.

Since Renesas has already made advance payments under the contract,…