The competition in the silicon carbide market is becoming increasingly fierce, and the production capacity of this international large factory has increased by nearly three times

Source: Global Semiconductor Watch Author: Lisa

    Currently, with unique advantages such as high voltage, high current, high temperature, high frequency, and low loss, silicon carbide power devices have become a new growth point in the new energy vehicle, 5G communication, rail transit, smart grid, and other markets.

    According to the compound semiconductor research department under TrendForce Consulting, the overall SiC power component market size will reach 2.28 billion US dollars in 2023, with an annual growth rate of 41.4%. At the same time, benefiting from strong demand in the downstream application market, it is expected that the SiC power component market size will reach 5.33 billion US dollars by 2026.

    At present, the global silicon carbide market is mainly occupied by foreign manufacturers, especially in the face of huge market prospects. International semiconductor manufacturers such as STM, Infineon, Wolfspeed, ROHM, Onsemis, etc. have all increased their production capacity. Recently, in addition to Ansemy Semiconductor considering investing $2 billion to expand production of silicon carbide chips, SK Group has also announced that its new Busan factory will officially mass produce SiC, expanding production capacity by nearly three times.

    On May 16th, SK Group announced that SK powertech‘s new factory in Busan had ended trial operation and would officially enter mass production.

    This means that SK Group‘s SiC (silicon carbide) semiconductor production capacity will expand nearly threefold, and it is expected that SK powertech‘s sales growth will exceed 500 billion Korean won (approximately 374 million US dollars) in 2026.

    According to data, SK Group is currently the first manufacturer in South Korea to have a full SiC industry chain, while its subsidiary SK powertech is a well-known enterprise in the global design and production of SiC (silicon carbide) power semiconductors.

    In May last year, SK Group announced that it would invest 247 trillion won (equivalent to 1976 billion US dollars) in the fields of semiconductors, batteries, and biopharmaceuticals over the next five years, of which 179 trillion won would be invested in South Korea to assist in revitalizing its economy.

    According to "SK China", SK powertech‘s new factory in Busan plans to increase its operating rate to 100% by the fourth quarter of 2023. At that time, the new factory will have an annual SiC power semiconductor production capacity of 29000 sheets (150mm/6-inch chip standard), which is nearly three times higher than the current approximately 10000 sheets.