Infineon Technologies is a participant in global power systems and IoT, and has recently reached an agreement with global semiconductor manufacturer skkSilonCSS. The agreement stipulates the production of 150mm silicon carbide wafers for Infineon.

The growth of silicon carbide is enormous: McKinsey predicts that the information center equIPMent market will reach $14 billion by 2030. Its significant driving force comes from the increasing adoption of silicon carbide and the rapid growth of industries such as electric vehicles. Widely used in power conversion devices and power systems across different departments, the demand for silicon carbide wafers is only on the rise. But in recent years, on a global scale, there has been a rise in supply chains; Volatility;.

Due to the Covid-19 pandemic, geopolitical factors, and many other factors, semiconductor companies have been catching up in the supply of final products. Many companies seek to purchase more manufacturing units and establish a more reliable and flexible supply chain framework to avoid future production crises. Infineon has also adjusted its supply chain strategy: in the past two years, it has officially signed multiple agreements with global semiconductor manufacturers.

In August 2022, Infineon signed a contract with II-VI (now a related company) in the United States. In May 2023, Infineon signed a long-term agreement with Chinese SIC supplier TankeBlue to ensure that additional competitive SiC sources - high-quality 150 mm SiC wafers and ingots used to manufacture SiC semiconductors - account for a double-digit share of long-term forecast demand. In addition, the company signed a memorandum of understanding with Hon Hai Technology Group (Foxconn) in May 2023 to collaborate on SiC and leverage their respective expertise in electric vehicle development.

Angelique van der Burg, Chief Procurement Officer of Infineon, said, "Supply chain resilience means implementing a multi supplier strategy, thriving in adversity, creating new growth opportunities, and driving decarbonization." "Multi procurement is crucial for Infineon, which is reflected in our procurement strategy," she added. "Therefore, we have supply agreements and a stable supplier base to rely on. However, we are closely monitoring the situation and preparing possible measures to further ensure the supply of relevant raw materials and services. Our goal is to occupy about 30% of the market share, with the industrial and automotive sectors having a market share of about 50/50."

Transition from 150mm wafer to 200mm wafer

In order to create new opportunities, Infineon and SK Siltron also agreed to work together to promote Infineon's transition to 200mm silicon carbide wafers. At present, the vast majority of SiC production for power FETs is carried out on 150mm wafers. However, due to difficulties in meeting customer demands for final devices and raw materials, people are turning to more economical 200mm SiC wafers. A larger wafer typically results in a larger number of devices on each wafer; Therefore, 150mm silicon carbide wafers have become the standard in the field of power electronics. Changing from a 150mm wafer to a 200mm wafer will result in an increase of approximately 85% in the number of chips per wafer. Therefore, due to the improvement of manufacturing efficiency, the cost per unit area related to the substrate and epitaxial layer will be greatly reduced. However,

In addition to the increased power density of the 200mm wafer, larger wafers also help integrate advanced thermal management functions: the increased surface area can enhance heat dissipation, which helps improve reliability, especially in high-power automotive/electric vehicle applications. With Infineon signing a multi-year agreement with automotive companies such as Hyundai Motor Corporation and Kia to provide SiC power modules by 2030, its establishment of 200mm SiC wafer production will only further consolidate its commitment to meeting the growing demand for SiC in the automotive industry's technology.

Infineon's Ambition for 200mm Silicon Carbide Wafers

On August 2023, at the American University of Science and Technology, Infineon also announced its ambition to establish the world's largest 200mm energy company in Kurin, Malaysia. It is expected that the company's total revenue potential will reach approximately 7 billion euros by the end of this decade. It can be inferred that the recent agreement reached with Skskaltlon here can be utilized in Infineon's roadmap to establish its position in the 200mm wafer industry. The company is headquartered in South Korea and utilizes physics valve transportation growth technology and computer-aided manufacturing technology to produce silicon wafers from crystal ingots. It also has ambitions for research and development and actively participates in new projects. Therefore, it can also be speculated that, according to the recently announced long-term agreement between Infineon and Sklsler, the goal is to promote projects on more efficient and environmentally friendly wafers.

Environmental concern for carbide factories

In new procurement, sustainability issues in the wafer manufacturing industry are inevitable. One factor that is often overlooked in the elasticity of silicon carbide wafers in the supply chain is the constantly changing environmental specifications of the European Union and other regulatory bodies. For example, in Germany, the new Supply Chain Due Diligence Act means that if a company fails to prevent human rights violations in its supply chain, it will face severe punishment.

However, when it comes to Infineon's commitment to a green supply chain, Vanderberg feels reassured: "Our carbon neutrality goals [Scope 1 and 2] are aligned with the 1.5C SBT. We are working with suppliers to reduce Scope 3 emissions. As part of our supplier engagement plan, we require our major suppliers to disclose their emissions to the CDP and seek to validate their carbon reduction emissions through a scientifically based target plan. SK Siltron has already been included in the plan."

Fushite Technology is deeply involved in the field of power devices, providing customers with power devices such as microcontrollers (MCUs) and touch chips. It is an electronic component supplier and solution provider with core technology.