The semiconductor company goes bankrupt and presses Chinese competitors

The semiconductor company is bankrupt as the pressure of Chinese competitors initially appeared in TheStret.

The once popular Japanese particle manufacturer collapsed due to increasing debt, slowed down electric cars (EV) sales and supply from Chinese competitors. Last week, the company applied for bankruptcy, less than three years after its widely announced launch in 2022. At the end of the end.

The firm was supported by the Japanese government -joined financial institutions and focused on the manufacture of semiconductor, critical electronics, including electric vehicles (EVs), industrial equipment and home devices.

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With strong public support and renovated factory, which was previously operated by a large US minibus manufacturer, the company has proven to be ready to become the main player in the industry, which is believed to be important for Japan’s national security and economic development.

However, when confronted with increasing debt, which is determined by the deteriorating demand for electric cars and cheap components from the rapidly growing Chinese competitors, the Startup business model has appeared unsustainable.

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The JS Foundry, also known as Js Fab, is established in 2022, is based in Tokyo. December, supporting the Japanese Development Bank Foundation and developed Mercuria Investment and Sangyo SOS SOSEI Advisory.

JS Foundry brought bankruptcy protection last week in the Tokyo Regional Court, leaving about $ 110 million unpaid debts.

In order to reduce the expenses, the foundry inherited its production device-41-year-old FAB in Niiigata Prefecture, a US-based semiconductor in the US. (On) ;

Legal infrastructure has proven to be inappropriate for the requirements associated with the production of silicon carbide (SIC) devices-it is known that the intensive capital-demanding industry-may-be even more increased financial troubles.

The production of semiconductors is a loudly demanding industry. Name source and colon; Bloomberg & Sol; Getty Images

JS Foundry’s revenue increased in 2023 and sales increased to about $ 10 billion (almost $ 68 million) in the first year. However, 2024. Revenue decreased to $ 2.6 billion (about $ 17.6 million).

This sharp downturn ended with the end of the production agreement with the semiconductor (resulting from the on the Japanese object at the end of 2022).

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JS Foundry’s cash flow has become very negative, and in the coming weeks it is planned to pay subsidies from central and local authorities to be too late to cover their big financial obligations.

To make it even worse, the company’s EV sales downturn is particularly difficult. Rising interest rates, cancellation of subsidies and insufficiently developed charging infrastructure have mitigated EV enthusiasm, forcing car manufacturers to reduce chips.

The complex financial troubles of JS Foundry, highly subsidized Chinese particle manufacturers, flooded the global market with accessible power alternatives, so it was clear that the startup lacks the necessary scale and vertical integration to compete.

Finally, JS Foundry tried to negotiate with foreign investors to form a capital connection that would have helped to enter the semiconductor segment of the silicon carbide power-a-new generation known for its greater energy efficiency.

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However, these negotiations collapsed earlier this year, effectively interrupting the last remaining casting path to survival.

The collapse of JS foundry is the wider turmoil in the power semiconductor space. Rohm, another Japanese chip giant, has recently announced its first pure loss in more than a decade, accusing the inferior power semiconductor investment.

Wolfspeed in the US last month (The wolf) Previously known as Cree, for the bankruptcy of Chapter 11. The move led to the large write -off of Japanese particle manufacturers Renas Electronics, which extended the funding for Wolfspeed. Later, Renans refused plans to start SIC production later this year.

After all, the death of your foundry is a cautious investment in a capital -demanding market where geopolitics, macroeconomic variability and technological disorders can quickly enhance even the most promising, initially well -capitalized businesses.

The semiconductor company goes bankrupt when the pressure of Chinese competitors first appeared in Theestret 2025. July 24

This story was initially reported by Thestretet in 2025. July 24, where she first appeared.

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