SK Siltron Co., the country’s only manufacturer of semiconductor wafers under South Korea’s SK Group, will make a large-scale investment in the coming years in silicon carbide (SiC) wafer to meet growing demand for SiC-based power semiconductors used in electric cars and fifth-generation telecommunications devices.

According to multiple sources from the semiconductor industry on Thursday, market tracker TrendForce forecast SiC power semiconductor revenue to reach $680 million this year, up 32 percent from the previous year.

Another market tracker Yole Development also projected the SiC power semiconductor market to grow sharply from 1.1 trillion won in 2022 to 12.28 trillion won in 2030.

Demand for SiC power semiconductors are expected to soar on growth in the electric vehicle market. Power semiconductors are used in an electric vehicle to optimize drive and control voltage and electric current. The devices produced using SiC material are more resistant to voltage and heat compared with existing silicon semiconductors. They also allow downsizing of chips.

SiC semiconductors can endure 10 times higher voltage than existing semiconductors and operate in 400 degree Celsius temperature, unlike existing silicon semiconductors with a ceiling of 175 degrees. They also have high intensity level and can reduce volume to one-tenth of silicon chips.

Amid bright industry prospect, SK Siltron designated SiC power semiconductor-use wafers as next-generation source of growth and carried out large-scale investment last year.

In February last year the company acquired the SiC wafer division from U.S. chemical giant DuPont for $450 million.

Its investment is proving to be well-timed as there has been growing interest in SiC power semiconductors with many countries announcing to halt sales of new internal combustion engine vehicles. As part of efforts to take market lead, SK Siltron plans to carry out large-scale investment within five years and expand related facility.

The company’s SiC wafer business that had logged losses until last year is expected to swing to profit for the first time this year.

Yole Development projected SiC wafer market to grow to 891.1 billion won in 2025. Although under 1 trillion won, industry insiders noted that the market will expand sharply with more electric cars on the roads. Industry expected SiC wafer market to reach over 6 trillion won after 2030.

According to the brokerage industry, the U.S. Cree accounts for 40 percent of the SiC wafer market, followed by II-VI with 35 percent. SK Siltron comes next as Korea’s only manufacturer of SiC wafers.

An unnamed official from SK Siltron said that the SiC wafer market is in its early forming stage where market ranking can be switched with a single order. The company is weighing on the period for large-scale investment to expand share, the official added.

By: DocMemory
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