Infineon Technologies, a global player in the field of power systems and the Internet of Things, recently reached an agreement with global semiconductor manufacturer SK Siltron CSS. This agreement stipulates that SK Siltron produces 150mm silicon carbide wafers for Infineon.

The growth of SIC devices is enormous: McKinsey predicts that the SiC device market will reach $14 billion by 2030. The main reason for this growth is that the adoption rate of SiC exceeds that of silicon, as well as the rapid growth of industries such as electric vehicles. Silicon carbide wafers are widely used in various fields of power conversion equIPMent and power systems, and the demand for silicon carbide wafers is increasing without decreasing. However, in recent years, there have been fluctuations in the global SiC supply chain.

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.

"Supply chain resilience means implementing a multi supplier strategy and thriving in adversity, creating new growth opportunities and driving decarbonization," said Angelique van der Burg, Chief Procurement Officer of Infineon

"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 development of 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

In August 2023, Infineon also announced plans to build the world's largest 200mm silicon carbide power plant in Jolin, Malaysia. It is expected that the total revenue potential of the plant will reach approximately 7 billion euros by the end of this decade. It can be inferred that the recent agreement reached with SSK Siltron may be included in Infineon's roadmap to enter the 200mm silicon carbide wafer industry. SK Siltron is headquartered in South Korea and utilizes physical vapor transport growth technology and computer-aided manufacturing to produce SiC wafers from ingots. The company also has research and development ambitions and actively participates in new projects. Therefore, based on the recently announced long-term agreement between Infineon and SK Siltron, one can also speculate on advanced projects aimed at more efficient and environmentally friendly wafers.

Environmental issues in SiC factory

When it comes to new procurement, sustainability issues for wafer fabs inevitably arise. One often overlooked factor in the resilience of the silicon carbide wafer supply chain is the constantly changing environmental regulations of the European Union and other regulatory agencies. For example, in Germany, the new supply chain due diligence law means that if companies fail to prevent human rights violations in the supply chain, they will face severe penalties.

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 participation program, we require our major suppliers to disclose their emissions to CDP and seek to verify their carbon reduction emissions through a scientifically based target program. SK Siltron has been included in the program." Foster Technology is deeply involved in the power device field, providing customers with power devices such as IGBTs, sic devices, microcontrollers, and touch chips, and is an electronic component supplier and solution provider with core technology.