On April 22, ROHM and STMicroelectronics announced that they will expand their collaboration on the existing multi-year long-term supply agreement between ST and SiCrystal, a Rohm Group company, on 150mm (6-inch) silicon carbide (SiC) substrates.
Under the new long-term supply agreement, SiCrystal will increase the supply of silicon carbide substrate wafers to STMicroelectronics in Nuremberg, Germany, for a total price of at least $230 million.
Back in 2020, STMicroelectronics entered into a long-term supply agreement with SiCrystal. At that time, it was reported that the two parties reached an agreement of more than $120 million to supply advanced 150mm SiC wafers from SiCrystal to STMicroelectronics.
01.
SiC substrate layout from STMicroelectronics
In fact, while vertically integrating the silicon carbide industry chain, STMicroelectronics has adopted a strategy of "acquisition + self-construction + outsourcing" for the upstream end of SiC substrates to enhance the resilience of ST's supply chain and better cope with future demand growth.
In 2019, STMicroelectronics acquired a majority stake in Swedish silicon carbide substrate maker Norstel AB (now ST SiC AB). The team specializes in silicon carbide substrates and will accelerate ST's transition to 8-inch wafer production.
Headquartered in Norrköping, Sweden, Norstel was founded in 2005 as an affiliate of Linköping University. As a result, ST has its own SiC substrate facility in Norrköping, Sweden.
In addition, in October 2022, STMicroelectronics announced that it will build a new SiC substrate factory in Catania, Italy, to exclusively produce Norstel-developed SiC substrates, enabling the in-house supply of 40% silicon carbide substrates. A new full-process silicon carbide substrate manufacturing plant in Catania is currently under construction and is expected to start production in 2024.
On the one hand, self-owned and self-built substrate factories are the case, and ST also has technical cooperation with substrate companies.
For example, STMicroelectronics has previously worked with Soitec to develop silicon carbide substrate fabrication technology. The goal of ST to manufacture future 8-inch SiC substrates using Soitec's SmartSiC™ technology is to facilitate the fabrication of SiC devices and modules in the medium term, with the goal of completing pre-production certification testing of Soitec's SiC substrate technology within 18 months of the collaboration.
However, in order to synergize capacity supply, STMicroelectronics will also adopt an external supply strategy. In addition to the aforementioned SiCrystal, ST has also signed a supply agreement with Wolfspeed (Cree) and is gradually expanding its cooperation.
◎In January 2019, STMicroelectronics signed a multi-year supply agreement with Wolfspeed (Cree) for the supply of advanced 150mm silicon carbide (SiC) wafers and epitaxial wafers worth US$250 million.
◎In November 2019, STMicroelectronics and Wolfspeed (Cree) announced the expansion and extension of their existing multi-year, long-term silicon carbide (SiC) wafer supply agreement to more than $500 million.
◎In August 2021, STMicroelectronics and Wolfspeed (Cree) announced the expansion of their existing multi-year, long-term silicon carbide (SiC) wafer supply agreement. The total value of the agreement was expanded to more than $800 million.
Looking back at ST's production capacity, in addition to its own SiC substrate factory in Norrköping, Sweden and the integrated SiC substrate manufacturing plant under construction in Catania, Italy, STMicroelectronics has also established a new 8-inch SiC device manufacturing plant in Chongqing with Sanan Optoelectronics, and in order to meet the substrate needs of the joint venture, Sanan Optoelectronics will also use its own SiC substrate process to build and operate a new 8-inch SiC substrate manufacturing plant separately.
It is reported that the plant plans to invest a total of 7 billion yuan, covers an area of 276 acres, adopts a construction and phased production, and plans to reach an annual production capacity of 480,000 pieces of 8-inch SiC substrates, and the joint venture company will also sign a long-term SiC substrate supply agreement with Hunan San'an.
02.
onsemi's SiC substrate layout
Similarly, onsemi's substrate layout is similar to STMicroelectronics', with "acquisition + self-construction + outsourcing" at the same time.
In terms of outsourcing, in 2019, onsemi signed a multi-year agreement with Wolfspeed (Cree). Wolfspeed (Cree) will supply $85 million worth of advanced 150mm silicon carbide (SiC) die and epitaxial wafers to ON Semiconductor for high-growth markets such as EVs and industrial applications.
In terms of acquisitions, in August 2021, onsemi announced the acquisition of SiC manufacturer GT Advanced Technologies (hereinafter referred to as "GTAT") for US$415 million (about 2.8 billion yuan) in cash. In November of the same year, onsemi announced the completion of the acquisition of GTAT, securing and increasing the capacity of SiC supply, and also marking the transition of onsemi's silicon carbide substrates from a primary outsourcing to a hybrid model of outsourcing and in-house.
In terms of self-construction, in 2022, onsemi first completed the completion of a new silicon carbide plant in Hudson, New Hampshire, increasing onsemi's SiC ingot production capacity five-fold year-on-year, and then expanded its silicon carbide plant in Roznov, Czech Republic, which increased SiC substrate and epitaxial wafer production capacity by 16 times over the next two years.
03.
ROHM's SiC substrate layout
In 2009, ROHM acquired SiCrystal, a German manufacturer of SiC substrates, and extended from the device end to the substrate material end. However, with the increase in downstream demand, this part of the production capacity in Germany is in short supply.
In order to plan for business continuity, secure a stable and secure supply chain, and expand production capacity, ROHM decided to establish a silicon carbide wafer production line in Japan, making it a second production base for ROHM silicon carbide wafers.
During the November 2023 earnings call, Rohm Semiconductor Co., Ltd. President Koshi Matsumoto announced that it will produce 8-inch SiC substrates at its second plant in Miyazaki Prefecture, Japan, primarily for the company's internal use, with production expected to begin in 2024.
At the same time, this will be the first time that ROHM has produced SiC substrates in Japan.
The Miyazaki No. 2 Plant was originally the former Kunitomi Plant of Solar Frontier, a subsidiary of Idemitsu Kosan Industries. ROHM is about to acquire the plant in a deal. Once converted to ROHM's second plant in Miyazaki, it will be ROHM's largest SiC power semiconductor plant, producing 8-inch wafers.
According to ROHM's official website, ROHM currently has four silicon carbide-based power semiconductor production bases in Japan, located at the Kyoto headquarters, the Chikugo and Nagahama factories in Fukuoka Prefecture, and the Miyazaki Daiichi factory. ROHM aims to achieve 100 billion yen in revenue from silicon carbide power semiconductors by FY2025 and to increase production capacity to six times that of FY2021.
ROHM is further engaged in stable upstream supply through "acquisition + self-construction".
04.
Wolfspeed的SiC衬底布局
Unlike other giants, Wolfspeed has adopted a self-built strategy on the SiC substrate end.
In March, the John Palmour Silicon Carbide Manufacturing Center in Chatham County, North Carolina, USA, topped out, significantly expanding Wolfspeed's materials production capacity.
The $5 billion project, located in Chatham County, North Carolina, will produce 200 mm silicon carbide substrates. By the end of 2024, the first phase of the 445-acre project is expected to be completed, with production expected to begin in the first half of 2025. At that time, Wolfspeed's materials production capacity will be significantly expanded.
Notably, Wolfspeed currently manufactures more than 60% of the world's silicon carbide materials at its headquarters in Durham, North Carolina, and is embarking on a $6.5 billion capacity expansion to significantly ramp up manufacturing.
In addition, in early February 2023, Wolfspeed announced plans to build the world's largest and most advanced 8-inch SiC device manufacturing plant in Saarland, Germany (planned or postponed, starting as early as 2025), which will be combined with the Mohawk Valley device factory (which opened in April 2022) and John Palmour Together, the SiC manufacturing center, which is the North Carolina SiC materials plant that topped out in March 2024, forms an important part of Wolfspeed's $6.5 billion capacity expansion plan.
05.
Infineon's SiC substrate layout
Infineon's plan to acquire Cree's Wolfspeed Power and RF business for $850 million in cash was halted due to opposition from the U.S. government.
Therefore, among the five giants we are familiar with, Infineon does not have a SiC substrate.
However, in 2018, Infineon acquired Siltectra, a leading company in the field of SiC wafer dicing. The company's Cold Split technology can increase the yield of SiC wafers by 90%, and in the case of the same silicon carbide ingot, it can provide 3 times the material, and can produce more devices, which can reduce the cost of SiC devices by 20-30%.
Therefore, this is a key layout for Infineon in the field of substrates.
However, in order to ensure the supply of high-quality silicon carbide substrates to meet its "confidence" for expansion, Infineon has adopted a diversified supplier system strategy and frequently signed upstream cooperation.
◎In 2018, Infineon signed a long-term agreement with Wolfspeed (Cree). Wolfspeed (Cree) will supply 6-inch SiC wafers to Infineon, and in January this year, Infineon and Wolfspeed announced the expansion and extension of their existing long-term 6-inch SiC wafer supply agreement.
◎In 2020, Infineon signed a silicon carbide (SiC) crystal rod supply agreement with GTAT, and the contract is expected to be five years.
◎In 2022, Infineon signed a multi-year agreement with Coherent (formerly II-VI) to purchase 6-inch SiC substrates from Coherent, and the two parties will also cooperate to transition to 8-inch SiC substrates.
◎In January 2023, Infineon and Resonac (formerly Showa Denko) signed a new multi-year supply and cooperation agreement, complementing and expanding the 2021 announcement. Resonac will initially focus on the supply of 6-inch SiC materials, with the agreement later in the process supporting Infineon's transition to 8-inch wafer diameters.
◎In May 2023, Infineon signed supply agreements with Tianyue Advanced and Tianke Heda respectively. Both companies are expected to account for a double-digit share of Infineon's long-term demand. In the first phase of the agreement, both focus on 6-inch SiC materials, and in the later stage, Tianyue Advanced and Tianke Heda will also help Infineon transition to 8-inch silicon carbide wafers.
◎In January 2024, Infineon and SK Siltron CSS officially entered into an agreement. SK Siltron CSS will supply Infineon with high-quality 6-inch SiC wafers. In the subsequent phase, SK Siltron CSS will assist Infineon in the transition to 8-inch wafer diameters.
At present, Infineon's production capacity is continuously expanding. Over the next five years, Infineon will invest up to EUR 5 billion in a significant expansion of its Kulim plant (the second phase of the third plant), with the aim of building "the world's largest 8-inch SiC power fab". In addition, Infineon will retrofit its existing plants in Villach, Germany, Austria, and Kulim, Malaysia, with 8-inch retrofits.
It is reported that this investment will bring Infineon annual revenue of 1 billion euros in 2025 and 7 billion euros by 2030, and will enable Infineon to occupy 30% of the global SiC share.
The strong demand in the downstream makes the expansion irreversible. At present, Infineon still adheres to the strategy of diversifying the supplier system to make up for the gap in the substrate link and ensure the production capacity of the upstream material end.
06.
epilogue
From the substrate layout of the five giants of SiC, it is not difficult to see that:
◎Whether it is acquisition, self-supply or outsourcing, it is only one of the substrate procurement strategies, and the "competition" of production capacity is the ultimate goal;
◎Overseas mainstream power semiconductor manufacturers have put 8-inch mass production on the agenda, and with the expansion of production scale and continuous optimization of technology, the cost of 8-inch wafers will gradually decrease;
◎Domestic substrate enterprises can use the 8-inch node to reduce production costs, improve product competitiveness, wait and see overseas markets, and accelerate their going to sea through technological innovation and scale effect.
Source: NE Times