US, Europe, Japan-focused supply of EV SiC and GaN on tight demand: III

Institute for Information Institute's (III) MIC estimates that the global electric vehicle scale will reach 9.221 million units this year, with an annual growth rate of more than 48%. The supply of key components like third-generation semiconductors silicon carbide (SiC) and gallium nitride (GaN) is tight, and the delivery time is still at a high of 42 weeks. Above, the SiC supply chain is still dominated by companies based in the United States, Japan, and the European Union.

The comments from III came from the "35th MIC FORUM Spring Resilience" webinar that lasted from the 15th to the 27th.

Looking ahead to the global electric vehicle market this year, He Xin-yu, a senior industry analyst at MIC, pointed out that short-term uncertainties such as the war between Russia and Ukraine, the COVID-19 epidemic in mainland China, and coupled with inflation crowding out consumption, the trend of electric vehicle price is expected to increase. It will continue to have a certain impact on sales; however, major car manufacturers are expected to give priority to ensure a steady supply of electric vehicles. It is estimated that the global electric vehicle scale will reach 9.221 million this year, an increase of more than 48% compared with 6.223 million last year. In 2023, that will exceed 10 million and reach 13.7 million vehicles.

Observing the manufacturing process of chips for electric vehicles, MIC pointed out that most of the chips used in vehicles are often in the range of more than 40 nanometers, 45nm, and above; 45% of the wafer manufacturing process for electric vehicles is dominated by 40nm to 45nm, and 5% is above 45nm.

He said that electric vehicles drive the demand for high-end power semiconductors, including third-generation silicon carbide (SiC) and gallium nitride (GaN), which are still in tight production, and expected for delivery as far off as 42 weeks.

MIC pointed out that electric vehicles drive the demand for SiC power semiconductor components and modules. It is estimated that by 2025, 20% of the world's electric vehicles will have SiC power components and modules.

He analyzed that the future growth drivers of SiC components and modules include application in electric vehicle owner inverters and on-board charging OBC (On Board Charger). More and more new electric vehicles with related designs will be mass-produced or delivered in the second half of this year. In addition, the decline in the price of SiC components can drive down the cost of BOM (Bill of Material, bill of materials) to achieve economic benefits; for 800V and 1200V electric vehicles, SiC component modules are more efficient than automotive insulated gate bipolar transistor (IGBT) modules.

However, observing the layout of major global manufacturers, MIC pointed out that the global SiC industry is still dominated by companies from the United States, Japan, and the European Union. Among them, Wolfspeed in the United States has achieved mass production of 4-inch and 6-inch production lines and has begun to build an 8-inch production line. Wolfspeed and Japan-based Showa Denko are currently the two biggest suppliers in the SiC epitaxy market.

As for the key SiC substrates, MIC said that conductive substrates suppliers Wolfspeed, ROHM, and STM are capable of supplying the production capacity of the entire SiC industry chain. On the other hand, semi-insulating substrate suppliers, including Wolfspeed, Showa Denko, ROHM, Qorvo, Onsemi, and NXP, have the production capacity to bolster the entire industry chain.