YG PRESS NEWS – Power SiC and GaN: investment and M&A reshape the industry

Product Related

The power SiC and GaN ecosystems are undergoing significant transformations due to substantial investments and mergers and acquisitions (M&A) activities.

  • SiC and GaN are continuing the rapid market evolution started in 2018-2019, but now have different drivers behind their growth.
  • Leading device players, such as STMicroelectronics, Infineon Technologies, Wolfspeed, onsemi, and ROHM, generated record revenues in 2022.
  • They will each move forward to US$1 billion SiC revenue in the 2023-2025 timeframe, with the total market exceeding US$8 billion in 2028.

According to Yole Intelligence, part of Yole group, in the Power SiC/GaN Compound Semiconductor Market Monitor, Expansion plans for capacity in the SiC market have been announced by multiple players to meet the growing demand from end-systems, particularly in the automotive sector, over the next few years. Key device players like STMicroelectronics, Infineon, Wolfspeed, onsemi, and ROHM are actively establishing facilities in different locations. At the wafer level, numerous projects are underway, with new entrants injecting significant resources, leading to a strong momentum in the growth of SiC. Furthermore, the 8″ SiC platform is gaining prominence as it offers scalability and significant cost reductions. Wolfspeed’s MHV fab is the only 8” SiC wafer fab operating as of 2023, and the company announced to build another 8” fab in Germany, with the investment of automotive tier-1, ZF. Other device players are also expediting 8″ production, expecting initial volume production by the end of 2023.
On the other hand, Tesla as the major SiC user announced to have 75% less SiC in its future powertrain. Infineon Technologies’ acquisition of GaN Systems is of great significance to the power electronics industry in the Power GaN market. It stands as the largest sale ever recorded within the power GaN sector. The purchase price of US$830 million is approximately 18% of Infineon Technologies’ total annual power electronics revenue, which is four times higher than the value of the entire power GaN market in 2022. This acquisition showcases a momentous move by the leading power electronics company, as it invests heavily in a relatively young company with comparatively smaller annual revenues. It signifies Infineon Technologies’ determination to capitalize on the growth potential of GaN and solidify its leadership position in the power electronics sector… For more information about this analysis, please contact us!

Titre du visuel

june 2021

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