Credit Suisse expects to sell 63 million new energy vehicles worldwide by the beginning of the next decade; Of these, 29 million will be fully electric. Meanwhile, industry watchers warn that growing demand for electricity will put further pressure on power infrastructure.
In order to further improve the power performance of electric vehicles (EVs), the world’s major automakers have set their sights on the new generation of SiC (silicon carbide) power components, and have successively launched a number of high-performance models equipped with corresponding products. As more and more automakers begin to introduce SiC technology into electric drive systems, the media expects the market size of automotive SiC power components to reach $1.07 billion by the end of 2022.
It is necessary to grab land and ensure the production chain first
The automotive SiC power component market is currently dominated by IDM in Europe and the United States. Major suppliers such as STMicroelectronics, Onsemi, Wolfspeed, Infineon, and Rohm have long been deeply engaged in this field and have close interaction with major automakers and first-tier manufacturers. The boom in the automotive market has also made mainstream manufacturers realize how important it is to have a stable supply capacity.
In order to better control the supply of raw materials, automotive IC manufacturers have entered the field of upstream substrate materials since the shortage occurred, trying to have full control over the supply chain. Onsemi, for example, acquired GT Advanced Technologies last year.
On the other hand, major car companies have high hopes for SiC and vigorously participate in the construction of the supply chain. From the perspective of China, the world’s largest electric vehicle market, car companies such as SAIC and GAC have begun to lay out the whole industry chain of silicon carbide, creating valuable development opportunities for domestic suppliers. At the same time, BYD, Hyundai and other car companies have launched their own chip research and development plans, injecting new vitality into the market.
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Cost reduction competition is fierce
In addition, the cost-effectiveness of using SiC power components has been a market concern, and the key lies in the upstream substrate material. The industry is experimenting with various methods to further reduce costs, including new crystal growth methods (UJ-Crystal, Lattice Lingyu), efficient wafer processing technologies (Soitec, Disco, Infineon, Lasic Semiconductor Technology), and following Wolfspeed in the direction of 8-inch wafer technology.
With the continuous breakthrough of SiC material technology and the maturity of chip structure and module packaging process, the penetration rate of SiC power devices in the automotive market is expected to maintain an upward trend, and gradually accelerate the process of vehicle electrification from the current high-end automotive applications to medium and low-end vehicles.
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The market is ripe and waits for no one
According to professional analysis, GaN and SiC solutions are ideal for AC/DC on-board chargers and HV-to-LV DC/DC converters for electric and hybrid vehicles. By 2025, it is estimated that one in every 10 vehicles sold worldwide will be a 48-V mild hybrid. Using a 48V system in a mild hybrid can improve fuel efficiency, deliver 4x more power without increasing engine size, and help reduce emissions without increasing system costs.
According to Exawatt, by 2024, passenger electric vehicles with SiC-based MOSFETs will sell more than those equipped with Si IGBTs. As the SiC market share of inverters grows, EV manufacturers are removing the last hurdles to widespread commercialization, such as the higher cost of SiC compared to traditional Si solutions.
Finally, on the supply side, ensuring adequate supply of SiC wafers remains an urgent concern for the industry. Leading substrate manufacturers have invested heavily in crystal growth to meet the growing demand for SiC, and according to media reports, nearly all leading equipment manufacturers today have purchased in-house wafer technology or increased existing wafer capabilities.
Finally, as more and more automakers begin to introduce SiC technology into electric drive systems, the market for automotive SiC stacks is expected to reach $1.07 billion in 2022 and climb to $3.94 billion by 2026.
