July 15, 2025 /SemiMedia/ — Japanese contract chip manufacturer JS Foundry has filed for bankruptcy protection with the Tokyo District Court, carrying an outstanding debt of ¥16.1 billion (approximately $110 million), according to people familiar with the matter.

The Tokyo-based company specializes in power semiconductors used in electric vehicles, appliances, and industrial systems. It has struggled with cash flow shortages and declining customer orders, amid intensifying competition from Chinese chipmakers in the power semiconductor space.

JS Foundry was established in December 2022 by a DBJ-backed fund along with investment firm Mercuria and advisory group Sangyo Sosei. The company operates a fab in Niigata Prefecture originally built by Sanyo Electric in 1984 and later acquired by Onsemi before being transferred to JS Foundry.

The firm reported sales of ¥10 billion in its first year, supported by a manufacturing agreement with Onsemi. However, after that contract ended, revenue fell sharply to just ¥2.6 billion in the fiscal year ending December 2024.

JS Foundry employs around 550 people, with roughly 200 on secondment to other firms. The bankruptcy filing comes even as Japan’s central and local governments prepare semiconductor subsidies to boost domestic chipmaking.