Global and China Automotive IGBT and SiC Research Report, 2022

Global and China Automotive IGBT and SiC Research Report, 2022

1. In 2025, China's automotive SiC market will be valued at RMB12.99 billion, sustaining AAGRs of 97.2%.

Silicon carbide (SiC) devices that feature the resistance to high voltage and high frequency are seen more and more in new energy vehicles. At present, SiC devices are often used in main drive inverters, OBCs (on-board chargers), DC-DC vehicle power converters and high-power DCDC charging equipment. With compact dimensions, SiC devices can reduce much power loss for new energy vehicles and thus make them still work normally at a high temperature of 200°C. The miniature and lightweight SiC devices can also lessen the energy consumption caused by the weight of a vehicle itself.
On one estimate, China demands around RMB1.69 billion worth of automotive SiC substrates in 2022. Thanks to the growing new energy vehicle market and wider adoption of SiC products, China's automotive SiC substrate market will be valued at RMB12.99 billion in 2025, showing AAGR of 97.2%. SiC substrates are replacing more automotive Si-based IGBTs. From the cost structure (substrate 46%, epitaxial wafer 23%, and module 20%) of SiC devices, it can be seen that China’s new energy vehicle SiC device market will be worth RMB28.24 billion in 2025.

2. 800V high-voltage platforms will favor increasing demand for silicon carbide.

In 2018, Tesla first installed 24 SiC power modules (provided by STMicroelectronics) in the main inverter of Model 3, with supported voltage of 350-400V. The SiC power modules used in Model 3 can bring a 5-8% increase in the efficiency of the inverter compared with the IGBT modules in Model S, that is, the inverter efficiency gets improved from 82% to 90%, enabling a much longer cruising range. After Tesla Model 3 used SiC modules, other automakers including Toyota, BYD, NIO, GM, Volkswagen and Renault-Nissan-Mitsubishi have followed suit.

As OEMs head for 800V high-voltage platforms, silicon carbide becomes more in demand, and the pace of using it in vehicles quickens. From 2021 to 2022, foreign models such as Hyundai IONIQ5, Audi e-tron GT and Porsche Taycan, and Chinese models like Great Wall Saloon Mecha Dragon, BAIC ARCFOX αS Huawei Inside (HI) Edition and ZEEKR 001 have been the first ones to pack 800V high-voltage platforms. 800V and SiC become the best partners.

More new energy vehicles based on 800V architectures will be production-ready beyond 2023. To answer the needs for high current and high voltage, the main drive inverter of motor controllers will be bound to replace Si-based IGBTs with SiC-MOS. According to Infineon's forecast, by 2025, over 20% of power devices for automotive electronics will use SiC technology.

3. Foreign suppliers are making layout of 6 to 8-inch substrates, and Chinese companies 4 to 6-inch.

SiC suppliers are the busiest players in the run-up to a boom in demand.

Foreign companies:

STMicroelectronics: since 2018, the demand from Tesla has facilitated a surge in orders for STMicroelectronics’ 650V SiC MOSFETs. In June 2022, the vendor invested USD244 million to build a new SiC production line in Morocco for exclusive supply to Tesla.

Bosch: from October 2021 to July 2022, Bosch invested a total of EUR800 million to expand its semiconductor capacity and SiC clean rooms, hoping to become the world's leading supplier of SiC chips for electric mobility.

ON Semiconductor: since 2021, ON Semiconductor has provided inverter SiC modules for a Mercedes-Benz EQ fleet. It will also provide SiC products for Mercedes-Benz VISION EQXX concept car (SOP in 2024). Based on its optimistic estimates of the market, ON Semiconductor established a new research center and a wafer fabrication plant in Bucheon, Gyeonggi-do, Japan in July 2022. The vendor predicts that its SiC products will contribute revenues of USD1 billion in 2023 and USD2.6 billion in 2024.

Chinese companies:

BYD Semiconductor: in June 2022, BYD Semiconductor introduced a 1200V 1040A SiC power module, delivering nearly 30% higher power without changing the original package dimensions. According to BYD’s plan, by 2023 all EVs under it will use SiC power semiconductors instead of Si-based IGBTs.

San’an Optoelectronics: in June 2021, its semiconductor base in Hunan became operational, providing silicon carbide used in on-board chargers for BYD. In addition, in February 2022, San’an Optoelectronics and Li Auto established a joint venture to research silicon carbide technologies and expand the silicon carbide market.

Synlight Semiconductor: on December 29, 2021, Synlight Semiconductor and Great Wall Motor signed a strategic investment agreement, under which Synlight Semiconductor will provide SiC products for Mecha Dragon models of Great Wall Motor. The subsequent range of models will largely use SiC products as well.

Through the lens of layout of suppliers, there are still big differences between Chinese companies and their foreign peers:

1. Foreign companies have achieved mass production of 6-inch substrates and are deploying 8-inch products; Chinese companies are in the 4 to 6-inch phase.
2. The foreign industry chain is more complete. For example, Wolfspeed, ON Semiconductor, STMicroelectronics and the like have built a vertical supply system of “SiC substrate-epitaxial wafer-device-module”, while Chinese players still stay at one link in the industry chain.

In the future, to meet market demand and gain more competitive edges, Chinese suppliers need to solve issues like industry chain expansion, R&D of automotive-grade SiC MOSFETs, batch manufacturing capacity, and yield improvement in addition to construction of production lines.


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