Silicon Carbide (SiC) has become increasingly popular for use in power electronics applications due to its increased power handling capability and lower energy consumption compared to silicon. Unfortunately, however, its high cost remains an obstacle for widespread adoption.
Japanese firms DENSO and Mitsubishi Electric have both invested in US company Silicon Carbide as they begin purchasing SiC wafers.
Cost of wafer
The cost of producing a silicon carbide wafer depends on many variables, such as its size and diameter; larger wafers allow more chips to fit. Furthermore, its cost can also depend on what kind of silicon carbide material was used in its creation; alpha silicon carbide and beta silicon carbide are two popular choices; both types produce at high temperatures with one having hexagonal crystal structures similar to Wurtzite while the other features cubic ones more reminiscent of diamond.
Cost reduction of SiC wafers can be achieved through increasing yield levels, but this requires substantial investment by wafer manufacturers. While this may impose significant short-term burdens upon related companies, their long-term decline should increase downstream applications while driving adoption of SiC technology and materials and ultimately fuel overall growth.
SiC wafer costs can also be cut down by switching to smaller dies that increase device density on substrate and yield. This is possible thanks to their lower resistance that translates into smaller device areas – an essential step toward lowering system costs; but this will take time for industry progress to reach this goal.
Cost of modules
SiC modules are an essential element of power electronics supply chains and have an immense effect on system costs. Constructed using silicon carbide wafers processed using high-precision tools and procedures, SiC modules may cost more than similar polysilicon ones due to higher processing costs; nonetheless, their lower prices reduce overall system expenses and encourage downstream applications.
Cost of silicon carbide (SiC) wafers is expected to continue falling as manufacturers increase production capacity and boost yield levels, invigorating the market overall and spurring its development.
But the SiC industry faces several hurdles. Demand may stall during an adjustment period as businesses become familiar with designing and integrating SiC components, and global economic issues could potentially affect the market.
While many incumbent and emerging suppliers have announced capacity expansion plans, it can be challenging to assess future supply. The number of 150 mm-equivalent SiC wafers produced will depend on each manufacturer’s yield rate; furthermore, many suppliers do not reveal their share of automotive-grade MOSFET wafers which are in high demand and more difficult to manufacture; so simply monitoring nameplate capacity announcements does not give an accurate picture of future supply.
Cost of packaging
SiC devices have become increasingly popular due to their power-efficient, eco-friendly performance; however, many challenges exist within this market, such as high packaging costs. But technology advances are expected to reduce these costs, encouraging further adoption of silicon carbide products. Furthermore, 6-inch and larger diameter wafers will allow more devices on one wafer, thus decreasing costs per device and driving growth in the global silicon carbide (SiC) wafer market.
Veliadis also noted that much of the cost associated with SiC devices relates to substrate costs and this has contributed to their slow adoption by market participants. However, major SiC players have taken proactive steps to expand production capacities to meet rising demand while simultaneously lowering substrate costs; STMicroelectronics for instance recently acquired majority ownership in Sweden-based SiC wafer supplier Nortel as well as strengthening their partnership with French material supplier Soitec.
Infineon Technologies and TanKeBlue recently entered into a long-term contract to ensure they have access to competitively priced 150mm SiC wafers for their automotive MOSFETs and other devices, helping Infineon maintain production rates while supporting sustained market growth.
Cost of components
Silicon carbide wafers are widely utilized in electronic devices that operate under high temperatures and voltages, such as power electronics for electric vehicles (EVs), 5G communication systems, industrial automation equipment and industrial process control equipment. Unfortunately, they are costly to produce which restricts their market adoption; increasing research and development expenditures may reduce production costs while expanding market presence.
Silicon Carbide Wafer Market Size
The global silicone carbide wafer market is expanding at an impressive pace, driven by rising demand for electric vehicle (EV) power electronics and renewable energy applications. Rising popularity of solar inverters has further spurred on this market growth.
Other drivers of the market include advances in manufacturing techniques and SiC substrates’ ability to increase manufacturing efficiencies. SiC wafers should also offer superior thermal expansion coefficient properties that make them suitable for galium nitride-based optoelectronic devices.
Although demand levels will play a role in whether there is an SiC wafer surplus or shortage, ensuring there is sufficient supply of 200-mm wafers will be paramount to industry success. Incumbent suppliers with large production capacities will enjoy greater advantages; emerging suppliers who have yet to go through extensive learning cycles should invest heavily in improving wafer quality and yields to compete effectively with established competitors.
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