■ Rapid increase in new investment based on demand for automotive power semiconductors

As electrification of automobiles spreads, autonomous driving, and the importance of in-vehicle computing increase, compound power semiconductors such as SiC (silicon carbide) and GaN (gallium nitride) are rapidly emerging as core components of automobiles to improve the efficiency of automobile batteries and minimize power consumption. In the future, SiC power semiconductors are expected to grow at an average annual rate of 72% until 2025.

According to recent automotive semiconductor industry reports, automotive semiconductor companies are focusing their research and investment on compound power semiconductors.

Wolfspeed, which has a 62% share of the SiC wafer market, is said to be planning to increase its production capacity by more than 30 times by 2024 compared to 2017.

STMicroelectronics, which also manufactures SiC chipsets, is known to have set a target of $1 billion in sales by 2025, up from $200 million in related sales in 2019. It is also known to be planning to increase SiC capacity tenfold and expand from the current 6-inch center to 8 inches.

Infineon, the number one automotive semiconductor company, is reported to have started production of 12-inch wafer-based SiC semiconductors at its new fab in Palach, Austria, in which 1.6 billion euros were invested.

This expansion of investment is due to the analysis that the demand for perfume compound power semiconductors will increase due to the expansion of electric vehicle distribution.

The International Energy Agency (IEA) predicted in its '2021 Global Electric Vehicle Outlook' report last year that the number of electric vehicles worldwide would increase from approximately 11 million in 2020 to 230 million in 2030.

Additionally, the global autonomous vehicle market outlook is expected to reach $1.2 trillion by 2035, with an average annual growth rate of 21.9%.




Shinhan Investment & Securities forecasted that the domestic SiC power semiconductor market for electric vehicles will grow by an average of 72% annually from 2021 to 2025, reaching a domestic market size of KRW 1.23 trillion in 2025.

NH Investment & Securities also forecasted that the SiC wafer market will grow at an average annual rate of more than 30% over the next five years.

■ Increased power efficiency, increased driving distance, and contribution to CO2 reduction

This increase in demand is due to the growing importance of electricity consumption within automobiles.

Last January, Mercedes-Benz unveiled the VISION EQXX at CES 2022, demonstrating the best energy efficiency with an excellent energy consumption of less than 10 kWh per 100 km and a range of over 1,000 km on a single charge.

To achieve this kind of energy efficiency, increasing the capacity of automobile batteries is important, but power semiconductors and system configurations that efficiently use the battery power and minimize power consumption are also important.

This is why SiC and GaN are attracting attention as automotive power semiconductors that can capture both battery efficiency and power consumption.

The two compound power semiconductors could increase the power efficiency of automobiles and equipment, resulting in not only longer driving ranges but also significant CO2 reductions.



GaN is attracting attention in the automotive field in the following areas: △Onboard charger adapters for hybrid vehicles, △DC-DC converters for automobiles, and drivers for LIDAR.

Electric vehicles using GaN-based traction inverters have reduced power loss by 65% compared to conventional power semiconductors.

This is a definite advantage for onboard chargers (OBCs), DC-DC converters and main traction inverters, and is also useful for improving battery range and fast charging.

GaN increases the efficiency of power conversion from the electric vehicle's battery to the drive train, allowing it to run longer with the same small battery, alleviating range anxiety, a chronic problem with electric vehicles.

Furthermore, by preventing unnecessary power loss, we have come one step closer to contributing to carbon neutrality (virtually zero greenhouse gas emissions).

At the 'e4ds Semiconductor Technology Conference 2021 Spring' hosted by e4ds last year, Hyung-Seok Lee, a senior researcher at the Electronics and Telecommunications Research Institute, said, "If Si elements are replaced with GaN elements, the resistance loss is reduced to 1/1,000, and the efficiency is maintained at 95% for DC-DC, 90% for AC-DC, and 99% for DA-AC, which is an increase of 2-10%p compared to Si elements." He added, "In order to use it for automobiles, a thorough verification process for durability and safety is necessary."

SiC has high voltage and high heat resistance, and its band gap is three times higher than that of Si, making it suitable for use in electric vehicles and power conversion devices.

The SiC module used in the Tesla Model 3 inverter has up to 10 times the efficiency compared to Si, and its volume and weight have been reduced by 43% and 6 kg, respectively.

This is less than half the weight of the Nissan Leaf (11.15 kg), which was released around the same time.

■ In-vehicle power conversion essential, demand surges

Due to these advantages, compound semiconductors are expected to lead the power semiconductor market.

First, expansion is expected in the electric power conversion unit (EPCU) in the vehicle due to the difference in power generation source between electric vehicles and existing internal combustion engine vehicles.

Since electric vehicles are powered by batteries, they require an inverter to change direct current (DC) into alternating current (AC).

In particular, since batteries are high voltage while the power system is low voltage at 12 V, a converter for DC-DC voltage conversion is also essential.

In addition, electric vehicles are equipped with an OBC (On Board Charger) that converts direct current into alternating current through the OBC to charge the vehicle, so the installation of power semiconductors is essential.

In addition, it is expected that in the future, electric vehicles will be used for bidirectional charging to charge other objects with their remaining power, and the demand for power semiconductors for AC/DC bidirectional power conversion is expected to increase.




■ Full-scale application of SiC in the automotive industry

Tesla first installed 24 SiC MOSFET modules from STMicroelectronics in the inverter of its 2018 Model 3. It is reported to have achieved 10 times the efficiency compared to existing Si, a 43% reduction in volume, and a 6 kg reduction in weight.

Following Tesla's adoption of SiC, other automakers, including Hyundai, BYD, Toyota, Renault, and BMW, are increasingly installing SiC power semiconductors.

Hyundai Motor Company also designed SiC power semiconductors in-house, and the inverter power module in the 'Ioniq 5' released in February last year was equipped with SiC semiconductors developed in-house. This improved power efficiency by 2-3% and driving range by 5%.

Hyundai Mobis is expected to internalize the supply of automotive semiconductors and acquire its own semiconductor-related technology through its decision to acquire Hyundai Autron's semiconductor business.

In particular, as we are focusing on E-GMP module-related business, we are concentrating on internalizing compound semiconductor technology, which is its core component.

※ Joint reporting
Reporter Seong Yoo-chang (yoochang@e4ds.com)
Reporter Kim Ye-ji (lucy@e4ds.com)