Recently, following the entry of silicon carbide substrates into the Robert Bosch Group in Germany, Chinese SiC material manufacturers have entered another international SiC device manufacturer's supply chain.
On May 3, 2023, China's leading manufacturers of silicon carbide materials, SDTY and BJTK, officially announced that they had signed supply agreements with international semiconductor giant Infineon.
China local Silicon carbide suppliers enter the supply chain of international large factories
SDTY will supply Infineon with silicon carbide substrates and crystal rods, while BJTK will supply Infineon with silicon carbide wafers and ingots.
SDTY will supply Infineon with high-quality and competitive 150mm silicon carbide substrates and crystal rods for the manufacturing of silicon carbide semiconductors, with the first phase focusing on 150mm silicon carbide materials.
As for BJTK, it will provide Infineon with high-quality and competitive 150mm silicon carbide wafers and ingots for manufacturing silicon carbide semiconductor products
According to the latest long-term agreement signed, the first phase will focus on the supply of 150mm silicon carbide materials, but BJTK will also provide 200mm diameter silicon carbide materials.
The supply of both companies mentioned above will account for a double-digit share of Infineon's long-term demand. At the same time, SDTY and BJTK will also assist Infineon in transitioning to 200mm diameter silicon carbide wafers.
Infineon stated that signing contracts with SDTY and BJTK will help ensure the stability of the entire supply chain, while meeting the growing demand for silicon carbide semiconductor products in the Chinese market in areas such as automotive, solar, and electric vehicle charging applications and energy storage systems, and will promote the rapid development of emerging semiconducting materials.
Global demand for silicon carbide is facing explosive development
In recent years, China's third-generation semiconductor industry has grown rapidly, and the Chinese silicon carbide market has become the next business growth point that major semiconductor manufacturers are vying to seize.
In this context, a group of Chinese silicon carbide manufacturers, represented by SZSA, ZJLX, SDTY, BJTK, SXSK, etc., seized the opportunity and received continuous positive news such as factory construction, expansion, and financing. Not only did revenue grow rapidly, but major manufacturers also signed large orders.
As of April 27, 2023, SZSA has signed long-term procurement agreements for silicon carbide MOSFETs with a total amount exceeding 7 billion yuan; The annual report disclosed by SDTY shows that it has signed a long-term agreement with Bosch Group in 2022, joining the ranks of Bosch Group's suppliers of silicon carbide substrates.
In fact, with the rapid development of applications such as new energy vehicles, 5G communication, photovoltaic wind power, rail transit, and smart grids, the global silicon carbide market has seen a surge in demand.
According to the analysis of the Compound Semiconductor Research Office under TrendForce Consulting, with the clarification of cooperation projects between Infineon, ON Semi, and other automotive and energy industries, the overall SiC power component market size will reach 2.28 billion US dollars in 2023, with an annual growth of 41.4%. At the same time, benefiting from strong demand in the downstream application market, it is expected that the SiC power component market size will reach 5.33 billion US dollars by 2026.