Infineon Announces €5 Billion Investment to Expand Silicon Carbide Capacity
Power semiconductor major Infineon announced plans to invest up to 5 billion euros in the next five years for the construction of the world's largest 8-inch SiC power wafer fab in Malaysia.
Behind the plan is the commitment and support of customers, Infineon said the expansion plan has been customers about 5 billion euros design-win contract, as well as about 1 billion euros of advance payments. Among them, there are six carmaker customers in the automotive field, including Ford, SAIC and Chery.
Infineon pointed out that in the next five years, will be for the second construction phase of the third plant in Gulin, up to 5 billion euros of additional investment, so that the total planned investment in the Gulin plant from 2 billion euros to 7 billion euros. Together with the 8-inch silicon carbide conversion program in Villach, Austria, and Gühring, this investment is expected to bring Infineon in 2030 about 7 billion euros of silicon carbide annual revenue potential. This highly competitive manufacturing base will also support Infineon's goal of reaching a 30 percent market share in the silicon carbide market by 2030. Infineon estimates that the company's revenue from silicon carbide will exceed the target of 1 billion euros in the 2025 fiscal year.
In order to strengthen the layout of silicon carbide, Infineon has previously cooperated with Tianke Heda and Tianyue Advanced, two domestic manufacturers who will supply Infineon with 6-inch SiC materials; has signed a memorandum of cooperation with the Hon Hai Group, whereby the two parties will focus on the introduction of silicon carbide technology in high-power applications for electric vehicles; and has signed an agreement with Semikron Danfoss for a multi-year volume supply of silicon-based electric vehicle chips. Under the agreement, IGBTs and diodes from Semikron Danfoss will be produced by Infineon at its plants in Dresden, Germany, and Kulim, Malaysia.
In addition to Infineon, ON Semiconductor and BorgWarner to expand the strategic cooperation in silicon carbide (SiC), the total value of the agreement more than 1 billion U.S. dollars; Wolfspeed and automotive chip maker Renesas Electronics signed a 10-year long order of SiC; Mitsubishi Electric and Coherent (the former II-VI) to reach a cooperation, the two sides will work together to expand the scale of production of 8-inch SiC devices.
Compared with traditional silicon-based materials, silicon carbide has a large forbidden band width, high breakdown electric field, high saturation electron drift velocity, high thermal conductivity, high radiation resistance and other characteristics, suitable for the manufacture of high-temperature, high-voltage, high-frequency, high-power devices, which are widely used in automotive applications, solar energy, energy storage and high-power electric vehicle charging and other fields.
Currently, the silicon carbide market is accelerating growth. According to TrendForce, a global market research organization, it is expected that with ON Semiconductor, Infineon and other automotive, energy industry cooperation projects, the overall Silicon Carbide power components market output value of 2.28 billion U.S. dollars in 2023, an annual growth of 41.4%. 2026 Silicon Carbide power components market size is expected to reach 5.33 billion U.S. dollars, while one of the mainstream applications of the electric car to bring the output value will reach 3.98 billion dollars. The output value of electric vehicles, one of the mainstream applications, will reach 3.98 billion U.S. dollars.
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