[Editor's Note] Unlike general semiconductors that process and store data, power semiconductors are non-memory semiconductors that are used to process and control electricity or improve energy efficiency. Recently, demand for power semiconductors has been rapidly increasing in AI, 5G, electric vehicles, and renewable energy, and the government is actively supporting the improvement of power semiconductor technology, expecting that next-generation power semiconductors will emerge as a new market. Accordingly, this magazine has prepared a space to examine the power semiconductor market.


■ Power semiconductor market worth 53 billion dollars in 2023

As the power semiconductor market is expected to grow to approximately USD 53 billion by 2023, the demand for compound semiconductors such as GaN and SiC is expected to surge due to the increasing demand for power semiconductors in electric vehicles, power devices, etc., and the need for improved power efficiency.

According to the power semiconductor market size announced by OMDIA in February 2020, the power semiconductor (device, power IC, module) market size is expected to grow from approximately USD 45 billion in 2019 to approximately USD 53 billion in 2023, and the SiC wafer market used in next-generation power semiconductors is expected to grow more than threefold, from 218,000 sheets in 2019 to 693,000 sheets in 2027, with an average annual increase of 16%.

According to OMDIA, the leading power semiconductor company is Germany's Infineon, which has 13.41% of the global market, followed by Texas Instruments with 8.44%, ON Semiconductor with 6.76%, STMicronics with 5.64%, and Analog Devices with 3.88%.

Major companies that produce power semiconductors have their own production systems, but they often outsource the production to foundries for external procurement, and TSMC produces 70% of the world's power semiconductors. It is reported that it exists.

■ Electric vehicles and power semiconductors are expected to lead the market

In 2020, the silicon power semiconductor market was favorable in the information and communication device sector, such as server power supply, but recorded significant negative growth due to the slump in the industrial equipment and automotive/electrical equipment sectors.

Also, when looking at it by region, Japan, North America, Europe, and Asia excluding China recorded negative growth, but China saw a recovery in demand in the second half of 2020.

After 2021, the market is expected to expand due to progress in automotive electrification, increased investment in 5G communications, and recovery in demand in the industrial sector.

Meanwhile, demand for electric vehicles is expected to lead the power semiconductor market.

Although power semiconductors were used in existing internal combustion engine vehicles, the power semiconductor market has reached a major turning point with the advent of electric vehicles.

First, the demand for power semiconductors for electric vehicles has increased as new demand sources have emerged, such as propulsion motor drive devices, battery chargers, and DC-DC converters.

According to a report published by Mirae Asset Global Investments citing data from Infineon, the cost of automotive semiconductors for internal combustion engine vehicles is typically $350, while the cost for electric vehicles is estimated to be around $834.

In particular, when looking at the types of semiconductors used, the biggest difference between internal combustion engine vehicles and electric vehicles is power semiconductors. Tesla's three-phase AC asynchronous motor uses a total of 84 IGBTs (Insulated Gate Bipolar Transistors), 28 for each phase, and an additional 12 for other components, for a total of 96 IGBTs, and its cost is analyzed to be around $400.

Accordingly, Mirae Asset predicts that demand for power semiconductors will increase along with the increase in the market share of electric vehicles.Did.

■ Increased demand for compound semiconductors and electric vehicles

In particular, the increased demand for power semiconductors in electric vehicles has led to an increase in demand for new compound semiconductors.

The increased battery capacity, space constraints, and increased weight of electric vehicles have reduced their fuel efficiency.

On the other hand, when compound semiconductors such as SiC and GaN are used, the efficiency of power conversion devices can be improved and miniaturized, and the cost can be reduced due to the weight reduction of inverters and converters and the elimination of water cooling devices, which reduces the size of components. As a result, power semiconductor companies are starting to develop and commercialize compound semiconductors in earnest as they can improve power efficiency.

In particular, Tesla was the first to install SiC power semiconductors in its Model 3. According to Rohm's data, applying SiC semiconductors to the 220kW Tesla Model 3 reduced the inverter's volume by 43% and its weight by 6kg.

■ 2021 SiC $680 million GaN $61 million market

According to the latest research from TrendForce, the GaN power device market is expected to grow the fastest in 2021 with a revenue of USD 61 million, up 90.6% year-on-year, while TrendForce forecasts that the annual SiC power device revenue in 2021 will reach USD 680 million, up 32% year-on-year.

Major demand drivers for GaN and SiC power semiconductors include electric vehicles, power equipment demand, and massive investment from China.

TThe automotive industry is beginning to place increasing emphasis on third-generation semiconductors as ESL begins adopting SiC MOSFET designs for its own inverters used in its Model 3 vehicles.

By region, North America has a high proportion of demand for Tesla's electric vehicles, but with other automakers also planning to hire, the market is expected to expand to Europe and other regions in the future.

Additionally, as COVID-19 shows signs of slowing down, demand for RF front-ends of 5G base stations, smartphone chargers, and automotive onboard chargers is gradually increasing.

Total annual revenue of GaN RF devices is expected to reach $680 million in 2021, up 30.8% year-over-year, while GaN power device revenue is expected to reach $61 million, up 90.6% year-over-year.

In particular, the remarkable increase in sales of GaN power devices is due to the launch of fast chargers by smartphone brands such as Xiaomi, Oppo, and Vivo since 2018. These chargers have been well-received in the market due to their effective heat dissipation. In addition, some notebook computer manufacturers are currently trying to adopt fast charging technology in their notebook chargers.

Meanwhile, China is investing massive amounts of capital in its 14th Five-Year Plan starting this year and expanding its third-generation semiconductor production capacity to ultimately achieve semiconductor independence. A recovery in demand from the electric vehicle, industrial and communications sectors is expected to drive a corresponding increase in sales of third-generation semiconductor devices.

■ China, full-scale growth based on domestic demand for power semiconductors

In particular, China is said to be actively building a supply chain for power semiconductors against the backdrop of rapid growth of its own smartphone manufacturers and electric vehicle companies in the power semiconductor market.

According to Mirae Asset, China has succeeded in building its own supply chain consisting of fabless, foundry, and integrated semiconductor companies. Although its size is smaller than that of global semiconductor companies, the following companies are prominent: Silergy and SG Micro in the power integrated circuit field, Wingtech and Hua Hong in the MOSFET field, Tsuda Semiconductor (Starpower) in the IGBT field, and China Reinforced Crystal Resonance Technology Group (CRRC) in the high-voltage IGBT field.

■ Government begins full-scale promotion of power semiconductors

As the power semiconductor market grows rapidly, our government is also starting to foster power semiconductors in earnest.

At the 7th Innovation Growth BIG3 Promotion Meeting held on April 1, Minister of Trade, Industry and Energy Sung Yun-mo stated, “In order to implement new technologies such as AI and 5G and to revitalize future growth areas such as autonomous vehicles and renewable energy, efficient management of electricity is essential, and next-generation power semiconductors are a key component for this.” He added, “The government plans to actively support R&D and infrastructure so that we can preempt the still nascent next-generation power semiconductor market and secure future competitiveness. We will build a robust industrial ecosystem based on joint efforts between the public and private sectors and solidarity and cooperation within the value chain.”
/> The government plans to develop at least five commercial products and build infrastructure based on 6-8 inches by 2025, with the goal of securing global-level next-generation power semiconductor competitiveness.

In order to secure a domestic value chain, the plan is to secure application technology for compound materials such as SiC, GaN, and Ga2O3 to overcome the limitations of silicon materials, and to secure design technology for highly integrated and high-performance power ICs to develop next-generation power semiconductors based on compounds.

In order to secure the manufacturing process, we plan to support the advancement and reliability evaluation of compound semiconductor processes, support the establishment of SiC and GaN mass production processes at private foundries, and secure the prior technology required for the transition to 8 inches.