SK siltron to invest $640 mn in next-gen wafers by 2025
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SiC wafers are known for their superior performance in high-heat and high-voltage environments compared to traditional silicon wafers. They are a critical component for electric vehicle (EV) power semiconductors.
SiC power chips made from SiC wafers increase the EV driving range by 7.5 percent and reduce the charging time by 75 percent. They also reduce the weight and volume of the inverter module by over 40 percent.
The demand for SiC wafers has increased significantly amid a recent surge in demand for EVs. SiC wafers were first applied to Tesla Model 3 in 2018 and have since been adopted by all Tesla models, as well as Hyundai Motor Co.’s Ioniq 5, Kia Corp.’s EV6, and BYD Co. and Lucid Group Inc. models, among others.
The proportion of EVs worldwide that adopts SiC power chips increased to 70 percent in 2022 from from 38 percent in 2018.
The market for SiC power semiconductors is growing rapidly, with a projected market size of $6.3 billion in 2027, up from $1.1 billion in 2021, according to global market research firm Yole Group.
SK siltron acquired the SiC wafer business unit from U.S. company DuPont in March 2020, anticipating the future growth potential of the SiC power chip market. Since then, SK siltron has been actively expanding its investment in the field.
In 2021, the company announced to invest $300 million over the next three years, which now has been more than doubled to $640 million.
Based on the investment, SK siltron has been expanding its SiC wafer production capacity of its Gumi 2 plant in Korea since October 2021 and built a new facility in the U.S. The company is also conducting research and development on 8-inch (200mm) SiC wafers with a goal to begin mass production in the second half of 2024. The SiC wafers currently available on the market are smaller, ranging from 4 to 6 inches.
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