Abstract: Power semiconductor devices are widely used in all electrical and electronic systems, and each application field has different needs. The global power semiconductor market size reached $48.1 billion in 2022. As the world's largest consumer of power semiconductors, China contributes about 40% of the power semiconductor market, with a market size of US$19.1 billion in 2022 and further expansion in 2023. On the whole, although Continental Power Semiconductors started late, they have developed rapidly. As the core components to realize the independent and controllable electrification system, energy saving and environmental protection, power semiconductors have a large and urgent demand in the field of new energy vehicles, and power semiconductors have also become the semiconductor category with the largest increase in new energy vehicles.
1. Definitions and Classification
Power semiconductors are the second largest semiconductor industry in the world, and power semiconductors are the core devices of power electronic devices to realize power conversion and control, and their main function is to change the physical characteristics of voltage, current, frequency, and conduction state in the circuit to achieve the management of electric energy. Power semiconductors are divided into two categories: power devices and power ICs according to the degree of integration, of which power devices mainly include diodes, thyristors, MOSFETs, IGBTs, etc., while power ICs are the integration of power semiconductor discrete devices with peripheral circuits of various functions. Power semiconductors such as diodes, MOSFETs, IGBTs, and power management ICs all play an important role in automobiles.
Second, industry policies
1. Relevant policies at the national level
Power semiconductors are a pillar, strategic and forward-looking industry in mainland China. Power semiconductors are one of the core components of automobiles, which directly affect the performance and efficiency of the whole vehicle. In order to encourage the development of the domestic automotive power semiconductor industry, break the technological monopoly of foreign companies in this field, and improve the resilience of the automotive industry chain and supply chain. In recent years, the relevant departments of the state have formulated a series of policies to encourage the development of the semiconductor industry, including automotive power semiconductors, by improving the top-level design of the industry and formulating preferential tax policies. In January 2024, the Ministry of Industry and Information Technology (MIIT) issued the Guidelines for the Construction of the National Automotive Chip Standard System, proposing power chip standards to standardize the technical requirements and test methods for chips used by automobiles to handle high-voltage and high-current working conditions. The key construction directions of the standard include IGBT modules, power modules, and power discrete devices for electric vehicles.
2. Relevant policies at the local level
Local governments also attach great importance to the development of the automotive power semiconductor industry and encourage enterprises to strengthen technology investment. For example, in January 2024, the Chongqing Municipal People's Government issued the "Chongqing Integrated Circuit Packaging and Testing Industry Development Action Plan (2023-2027)", proposing to focus on the packaging and testing needs of high-reliability and customized shapes of characteristic chips, focusing on the packaging and testing needs of high-reliability and customized shapes of characteristic chips, and actively cultivating characteristic packaging and testing enterprises such as vehicle-grade automotive chips, power semiconductors, silicon photonic chips, and MEMS sensors.
3. Industry barriers
(1) Technical barriers
The R&D and production process of automotive power semiconductors involves many disciplines such as microelectronics, semiconductor physics, materials science, mechanical and electrical engineering, etc., and enterprises in the industry need to comprehensively master micromachining, simulation, layout design, epitaxy, packaging and testing and other technologies or processes, and carry out organic integration. Therefore, the automotive power semiconductor industry is a typical technology-intensive industry, with strong professionalism, high complexity, and high technical threshold. Enterprises in the automotive power semiconductor industry need to have sufficient technology, process reserves and rich industrialization experience in order to keep up with market demand and innovate in a timely manner, and independently develop cost-effective products that meet the diverse needs of customers. Relatively speaking, it is difficult for new entrants to master and maintain technological advancement in a short period of time, thus constituting a high technical barrier in the industry.
(2) Talent barriers
As a technology-intensive and labor-intensive industry, the automotive power semiconductor industry needs a large number of technical R&D personnel with solid professional background and rich experience to carry out high-quality and efficient design, manufacturing and continuous innovation of technical processes. In recent years, with the rapid development of the industry, experienced high-tech talents have shown an obvious shortage of demand, in view of the training of relevant talents requires a lot of time and economic costs, constituting a high talent barrier to new entrants in the industry.
(3) Customer barriers
Automotive power semiconductors are closely related to the development trend of the automotive field, and the quality and performance of automobiles are greatly affected by power semiconductor products. Therefore, automobile manufacturers have strict requirements for the performance indicators, reliability and stability of power semiconductor products, and the overall verification cycle is long. Therefore, for new entrants in the industry, it takes a certain period and excellent comprehensive strength to pass the certification process of high-quality customers, which constitutes a customer barrier to enter the industry.
Fourth, the industrial chain
1. Analysis of the industry chain
The upstream of automotive power semiconductors includes raw materials and production equipment, including silicon wafers, photoresists, photomasks, electronic special gases, polishing materials and other raw materials, and the production equipment covers all aspects of automotive power semiconductor production, including lithography machines, etching equipment, cleaning equipment, testing equipment, etc. The midstream is mainly engaged in the R&D and design, manufacturing, packaging and testing of automotive power semiconductors, and the downstream application market is automobiles.
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