Courtesy: Avnet
When we experience major shifts in the technology landscape, we should expect disruption and turbulence. OEMs, suppliers and distributors are coming together to navigate rough waters.
The shift from conventional silicon toward wide bandgap (WBG) substrates for power applications, predominantly Silicon Carbide (SiC) and Gallium Nitride (GaN), isn’t without its challenges. The supply chain for WBG solutions is now maturing, which means we’re seeing consolidation, acquisition and even some attrition.
This turbulence, while a cause for concern, is predictable and surmountable. Confidence in WBG technology remains high, but the market conditions and geopolitical risks must be acknowledged as contributing factors.
New applications are exhibiting polarised conditions. Demand for electric vehicles (EVs) has plateaued in some regions, while the thirst for AI data centres seems unquenchable. Both are served by WBG devices. The technological benefits of WBG are clear, but challenges around its use can still be a barrier. Recently, we asked SiC market leader onsemi for its thoughts and recommendations.
With a fully vertically integrated supply chain, from crystal growth to final packaging, onsemi is addressing scalability, quality control and cost efficiencies in-house. While it sees yield and the transition from 150mm to 200mm wafers as ongoing challenges, demand volatility can cause inventory fluctuations. This is a key contributor to the turbulence we’re seeing, but it’s part of the natural evolution of new technology.
Partnerships with companies including Vitesco and Magna, and long-term agreements are part of onsemi’s strategy to secure supply and fund capacity expansion. Its recent acquisition of Qorvo’s SiC JFET technology and the United Silicon Carbide subsidiary further strengthened its position.
The impact of increased demand
As demand increases, higher volumes will drive down per-unit pricing, which justifies the investments being made in larger wafer sizes and new fabs. Onsemi currently operates fabs and packaging facilities in multiple regions, helping to avoid supply chain disruptions related to geopolitical tensions and export controls.
As capacity expands due to demand, suppliers will see higher returns on their investments. This will support the industry’s virtuous cycle of investment in capacity. As technology matures, production volumes and yields improve and lead to greater process stability. Also, onsemi contributes to JEDEC (Joint Electron Device Engineering Council), Automotive Electronics Council (AEC) and the European Centre for Power Electronics’ Working Group “Automotive Qualification Guidelines” (AQG) to define SiC standards, which promote stability and interoperability between suppliers.
Turbulence will give way to stability
WBG is a transformative technology. It brings benefits to critical applications, including EVs, AI data centers and renewable energy. The strategic investments being made by suppliers, such as onsemi, demonstrate the industry’s commitment.
Pairing the right technology with key applications is crucial. For example, data centre power and circuit protection are applications where SiC JFETs are differentiated by their low on-resistance and switching frequencies, surpassing GaN and even SiC MOSFETs.
Market conditions and the challenges of adopting new technology are contributing to the turbulence we’re seeing in the market. But demand continues to grow, paving the way to stability.
