Demand growing for SiC power devices

The global silicon carbide (SiC) power devices market is set to rise dramatically over the next four years, with market research company Technavio predicting a compound annual growth rate (CAGR) of around 36% during the period 2018–2022.

Power electronics: a major market driver

According to Technavio’s hardware and semiconductor researchers, growing demand for power electronics is one of the major factors driving the global SiC power devices market. Power electronics help in controlling and converting electrical power, playing a vital role in controlling automotive electronics such as modern electric power steering, HEV main inverter, seat control, braking system and others. In automotive electronics, power electronics help in managing thermal issues and improving fuel efficiency. These devices use components such as SiC power MOSFETs and SiC SBDs in the powertrain systems to ensure optimal operation of all components at high temperature. Their use in several end-user industries is thus increasing the adoption of SiC power devices.

“SiC power devices are used in several power electronics systems since they are capable of withstanding high temperatures, thereby resulting in minimal power loss,” said a senior analyst at Technavio. “For instance, in 2017, Venturi Automobiles that designs, manufactures and sells luxury electric vehicles partnered with ROHM Semiconductor to adopt SiC technology for increasing the power efficiency of its electronic vehicles.”

In aerospace and defence, the demand for power electronics is high as these are lightweight, easy to maintain and operate, and have fault detection intelligence. SiC power electronic systems are used for energy conversion in generators and actuators that are used in aircraft. In 2016, Northrop Grumman Corporation, an American aerospace and defence technology company, announced its plans to increase the use of SiC power electronic devices in lightweight shipboard power systems for the naval application. The firm also plans to develop lightweight, compact and high-power electronic modules that will help in saving space in naval vessels.

Transition towards larger SiC wafer: emerging market trend

The major trend identified by Technavio is the increasing interest in large-sized SiC wafers. A 6″ wafer has a large surface area, which ensures the manufacture of a higher number of chips at lower cost. Larger wafer size reduces the manufacturing cost by 30% and device cost by 20–50%. In 2017, Norstel, a manufacturer of conductive and semi-insulating SiC substrate, developed the 6″ SiC n-type wafers to enhance the quality of SiC wafers. The expansion of the wafer size from 4″ to 6″ is achieved by reducing the dislocation density in the SiC wafers and expanding the diameter.

In addition to the above factors, manufacturers are entering several mergers and acquisitions to increase the wafer size. For instance, in 2017, II-VI Incorporated, an electronic component manufacturing company, acquired Kaiam, a manufacturer of optical transceivers and photonic lightwave circuits (PLCs). The acquisition aimed at expanding the in-house capacity to provide 6″ wafers for GaAs, SiC and InP-based devices. These instances show the increasing interest of manufacturers to increase the wafer size. This trend is set to enhance product development.

Global market opportunities

In terms of regional dominance, APAC dominated the global SiC power devices market in 2017, followed by EMEA and the Americas. APAC is also expected to emerge as the fastest growing market by increasing its market share by close to 3% during the forecast period. The other two regions are expected to witness a slight decline in their market shares by 2022. Customers in these regions include OEMs such as aerospace and defence firms, automotive manufacturers, consumer electronics manufacturers, healthcare equipment manufacturers and telecommunication equipment vendors.

Segmenting the global SiC power devices market based on application, product and geography, Technavio’s report ‘Global Silicon Carbide (SiC) Power Devices Market 2018–2022’ provides a detailed illustration of all the major factors influencing the market, including drivers, opportunities, trends and industry-specific challenges. It is available on the Technavio website.

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