On the eve of the third-generation semiconductor outbreak, who is laying out SiC in advance?

In 2018, Tesla made an unprecedented “big buck” on the Model 3, installing 24 silicon carbide (SiC) MOSFET power modules produced by STMicroelectronics in the main inverter.

At that time, the price of a SiC chip was about ten times more expensive than that of a traditional silicon chip. Even though the price of SiC has dropped, the price of a SiC chip is several times that of the same silicon device.

Tesla has always been a pioneer in the electric vehicle market, especially when it comes to cost control, it has almost reached the point of “madness”, using a modular platform, die-casting an integrated body, optimizing the battery pack design, and abandoning lidar, as long as it can To reduce costs, almost everything can be done.

But such a “stingy” Tesla is willing to spend a lot of money on a few small SiC chips. What is the reason? Just to significantly improve the battery life.

Compared with the IGBT modules used in the Model S, the SiC chips used in the Model 3 can improve the efficiency of the inverter by 5-8%, that is, the efficiency of the inverter is increased from 82% to 90%, which greatly improves the battery life. . In addition, SiC devices perform better at high temperatures, even if they reach a high temperature of 200 degrees, they can maintain normal power and ensure high-efficiency output for a long time.

It is precisely based on these advantages that Musk finally applied more expensive silicon carbide to the Model 3 performance version, which led to an industrial revolution in which SiC replaces traditional silicon-based devices.

/ 01 /

The third-generation semiconductor that became famous in World War I

With the success of Model 3, SiC became famous in the first battle, and power modules began to “get on the bus” quickly.

Since then, SiC has officially become the key layout direction of Toyota, BYD, Weilai, GM, Volkswagen, Renault-Nissan-Mitsubishi and other car companies. SiC, a relatively unfamiliar term, has gradually become well known to the market.

In fact, SiC belongs to the third generation of semiconductors, which is the second industrial breakthrough in the semiconductor industry.

The first generation is the elemental semiconductor material represented by elements such as silicon and germanium. Its discovery directly promotes the development of human communication and aviation photovoltaic technology.

Although it is called the first generation of semiconductor products, silicon-based semiconductor materials are still the semiconductor materials with the largest output and the most extensive applications today, and more than 90% of semiconductor products are made of silicon-based materials.

The second-generation semiconductor materials are represented by gallium arsenide and indium phosphide. Compared with silicon-based devices, they have high-frequency and high-speed optoelectronic properties, and are widely used in optoelectronics and microelectronics. They are the key substrates for making light-emitting diodes.

The third-generation semiconductor materials are wide-bandgap semiconductor materials represented by SiC and gallium nitride, which are suitable for high-temperature, high-voltage, and high-frequency scenarios, and have the advantage of less power consumption.

It is worth noting that the relationship between the three generations of semiconductors is not a complete replacement for each other, but more similar to each other. Each generation of products has its own advantages, and the replacement of traditional products is only achieved in some scenarios.

For example, SiC can withstand high voltage, and the breakdown electric field strength of the material is 10 times that of silicon; at the same time, the thermal conductivity is higher than that of silicon, and the requirements for heat dissipation are lower; suitable for high-frequency scenarios, the saturated electron drift rate of silicon carbide is twice that of silicon. This determines that silicon carbide devices can achieve higher operating frequencies and higher power densities.

This means that SiC can reduce energy loss and improve energy conversion efficiency, and SiC materials can perfectly replace the performance of silicon-based materials in radio frequency devices and power devices.

Before this, silicon-based IGBTs dominated the high-voltage and high-current scenarios, while silicon-based MOSFETs were far less efficient than IGBTs and were only suitable for low-voltage scenarios. However, silicon-based IGBTs also have some shortcomings, such as being unable to withstand high-frequency operating conditions and high power consumption.

After the emergence of SiC, due to its characteristics of high voltage resistance and high frequency resistance, only MOSFET devices with a simpler structure can cover the current IGBT withstand voltage level, and at the same time avoid the shortcomings of silicon-based IGBTs and consume less energy. Statistics show that the total energy loss of silicon carbide-based MOSFETs with the same specifications can be greatly reduced by 70% compared to silicon-based IGBTs.

It is precisely because of this success on the Model 3 that the third-generation semiconductors are rapidly commercialized, and the capital market has also noticed the value of small components.

/ 02 /

SiC’s “Singularity Moment”

Although SiC has many performance advantages, its obvious high cost still limits its comprehensive application.

The silicon wafer manufacturing process is mature, and the cost of silicon-based devices is extremely low. In contrast, the physical vapor transport method (PVT method for short) is currently required for the preparation of commercial SiC substrates, which requires extremely high temperature, long growth cycle, difficult control, and low yield. In addition, SiC is extremely hard and brittle, and the cutting time is much higher than that of ordinary silicon wafers.

These reasons combine to create the high cost of silicon carbide.

At present, the cost of SiC devices is still several times that of silicon-based products. However, considering the low energy consumption advantages of SiC devices and the downward trend in cost brought about by mass production and technology maturity, in the new energy era, SiC is about to usher in its cost-effective “singularity moment”.

The new energy era will be a big stage for SiC. In the new energy vehicle industry, SiC can be used for inverters, on-board chargers and fast charging piles that drive and control motors.

On the inverter, an electric vehicle using SiC power devices can increase the battery life by 5-10% under the same battery conditions. This is also the market where silicon carbide is currently most used in new energy vehicles. In the field of charging and fast charging, with the reduction of cost, the application of silicon carbide devices is gradually deepening.

Previously, the 800V high-voltage fast charging platform deployed by Xiaopeng was equipped with SiC chips to play key performances in high-voltage scenarios.

At the same time, the new energy revolution has also brought more application scenarios. Irregular power generation modes such as photovoltaics and wind power, as well as supporting energy storage systems, will become a huge market for SiC devices to be developed.

For example, in photovoltaic power generation, the current leading photovoltaic inverter companies have adopted SiC power devices to replace silicon devices. In the new infrastructure, UHV power transmission projects have a great demand for SiC devices.

Broadly speaking, in the future, SiC will promote the development and transformation of smart grids in applications such as solid-state transformers, flexible AC transmission, high-voltage DC transmission and power distribution systems.

According to Yole’s forecast, the application space of SiC devices will rapidly grow from US$600 million in 2020 to US$10 billion in 2030. Huawei predicts that the penetration rate of SiC in photovoltaic inverters will increase from the current 2% to more than 70% in 2030, and the penetration rate in charging infrastructure and electric vehicles will exceed 80%. Communication power supplies and server power supplies will be fully promoted and applied. .

Optimistically, the era of SiC is coming.

/ 03 /

The breakthrough of domestic semiconductors

From a higher-dimensional analysis, the third-generation semiconductor materials represented by SiC are expected to become a breakthrough in China’s semiconductor industry.

Taking silicon-based IGBT as an example, the global IGBT and other components are still dominated by Infineon, ON Semiconductor, Mitsubishi, and Fuji. The data shows that in 2019, the IGBT module market share CR10 accounted for 81.10%, of which only Star Semiconductor was a domestic enterprise, accounting for only 2.50%.

Although in the field of new energy vehicle IGBT subdivision, Star Semiconductor and BYD and other companies have a large market share. However, under the circumstance that the global silicon wafer production capacity is limited as a whole, the quota of IGBT products is very scarce, and the pace of localization substitution is not fast.

However, SiC jumps out of the overall situation of silicon wafers and is not subject to the problem of global silicon wafer production capacity. More importantly, the global third-generation semiconductors are generally in the early stage of development, and the gap between domestic companies and international giants is not large.

Throughout the entire industry chain, the downstream process of SiC is more inclusive and tolerant. The manufacturing process requires relatively low equipment and relatively small investment. One of the main keys is the upstream material end.

International giants have leading advantages. For example, Cree, which has now changed its name to Wolfspeed, has completed the coverage of the entire silicon carbide industry chain and is capable of mass production of 8-inch silicon carbide substrates.

Although domestic companies can only produce 4-inch and 6-inch substrates, in terms of their mass production time, the time behind international giants has been shortened from more than 10 years to 7 years, and the gap is shrinking.

In terms of the global market share of semi-insulating SiC (that is, used as a substrate for gallium nitride radio frequency devices), in 2020, the market shares of Cree and II-VI of the United States will be 33% and 35% respectively, while the market share of Shandong Tianyue has reached 30%. %, ranking third in the world.

Shandong Tianyue’s share in the semi-insulating silicon carbide market is approaching that of international giants

On conductive SiC wafers (that is, used as substrates for power devices), international giants have a greater advantage, but domestic companies are also trying to catch up. In 2018, the market shares of domestic Tianke Heda and Shandong Tianyue were 1.7% and 0.5% respectively, and Tianke Heda ranked sixth in the world.

In the era of new energy, China is the largest new energy vehicle market and one of the largest energy users. Under this catalysis, the domestic SiC industry chain is expected to achieve faster development and even become my country’s breakthrough in the semiconductor industry.

/ 04 /

Who is laying out SiC in advance?

Obviously, the SiC industry chain has become a hot spot for capital.

From top to bottom, the SiC industry chain can be divided into four parts: substrate, epitaxy, device and application.

In the substrate segment, Shandong Tianyue and Tianke Heda have become domestic leaders. Among them, Shandong Tianyue Science and Technology Innovation Board IPO has been approved and will become the first stock of silicon carbide substrates. In terms of other companies, Tianke Heda applied to voluntarily terminate the IPO application, and Hebei Tongguang Crystal also reported an IPO plan on the Science and Technology Innovation Board.

In the epitaxy and device sectors, there are many market players. The epitaxy links mainly include Han Tiancheng, Dongguan Tianyu, etc. The device links include Tyco Tianrun, CRRC Times Electric, Green Energy Core, Shanghai Zhanxin and other companies, and CLP Technology Ten is also covering these two links. Three Institutes, fifty-five Institutes of CLP, Basic Semiconductor, etc.

Under the tuyere, SiC has also become the key direction of investment layout of domestic listed companies.

At present, Sanan Optoelectronics has announced a total investment of 16 billion yuan, and will build the first domestic and the world’s third SiC vertically integrated industry chain, covering the three major links of substrate, epitaxy and device. This model is currently only adopted by the two major companies, Cree and Roma, and other international giants are also realizing the layout of the entire industry chain through investment and mergers and acquisitions.

Roshow plans to invest a total of 10 billion yuan in SiC industry projects, and has started small-scale trial production of 6-inch conductive SiC substrates; photovoltaic crystal equipment manufacturer Jingsheng Electromechanical also announced an investment of 3.134 billion yuan in SiC substrate wafer production bases The project has a designed annual production capacity of 400,000 conductive and semi-insulating SiC substrate wafers of 6 inches and above; Phoenix Optical’s silicon carbide epitaxial materials also have mass production capacity.

In addition, semiconductor companies such as China Resources Micro and Star Semiconductor are also deploying SiC substrates and devices. Among them, China Resources Micro SiC products will be released soon.

SiC has also ushered in intensive bets from tech giants. According to the prospectus of Shandong Tianyue, Hubble Investment, a subsidiary of Huawei, is the fourth largest shareholder of Shandong Tianyue, holding 6.34% of the shares after the issuance; at the same time, Hubble Investment is also the fourth largest shareholder of Tianke Heda, which held before the termination of the IPO. Has 4.82% equity. In addition, Huawei has also invested in Han Tiancheng and Dongguan Tianyu, two leading silicon carbide epitaxy companies.

In addition, Hubei Xiaomi Changjiang Industrial Fund, a subsidiary of Xiaomi, also invested in Shanghai Zhanxin, a SiC device company, at the end of October this year, holding 6.80% of the shares; TCL Capital participated in the D round of financing of SiC device company Tyco Tianrun.

It can be seen that SiC has become the focus of technology giants and capital layout. As the core technology route becomes more mature, its cost reduction path has emerged. Under the opportunity of the new energy situation and the rise of domestic semiconductors, SiC is expected to open a 100 billion-level blue ocean market.