A Japanese chipmaker, JS Foundry, has filed for bankruptcy protection due to mounting debt, low EV demand, and competition from Chinese rivals. The company, launched in 2022, faced financial troubles despite initial success. Revenue dropped from $68 million in 2023 to $17.6 million in 2024, leading to bankruptcy with $110 million in debt.

JS Foundry, backed by Japanese institutions, struggled with legacy infrastructure and competition in the silicon carbide device fabrication industry. Despite an initial surge in revenue, the company’s financial woes deepened due to a production arrangement end and negative cash flows. Talks with investors failed, leading to bankruptcy amid declining EV sales and Chinese competition.

Read more at Yahoo Finance: Japanese chipmaker goes bankrupt amid pressure from Chinese rivals