Upon reaching full production capacity, it will be able to manufacture 480,000 pieces of 8-inch silicon carbide automotive-grade MOSFET power chips annually.

According to news from Xiyong Microelectronics Park, as another flagship project for Chongqing in the semiconductor field, the construction site of the San'an STMicroelectronics Semiconductor Project, with a total investment of about 30 billion yuan, is bustling with the roar of machinery and orderly progress. With the full support and rapid advancement of the key special teams at the municipal and district levels, the main plant building has been capped in just over five months, and interior decoration and equipment procurement are underway. It is expected to be lit up and put into production in August of this year, two months ahead of the original plan.

The latest news from Western Chongqing Science City indicates that the person in charge of the San'an STMicroelectronics Semiconductor Project stated, "It is expected that by the end of April this year, we will be able to conduct external power supply tests for the substrate factory, which is 60 days ahead of schedule."

On June 8, 2023, San'an Optoelectronics Co., Ltd. and STMicroelectronics Group signed a cooperation agreement for the Chongqing San'an STMicroelectronics Silicon Carbide Project in Yu. According to the agreement, STMicroelectronics and San'an Optoelectronics will establish a joint venture in Yu to actively promote the construction of the San'an STMicroelectronics Silicon Carbide Project.

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The San'an STMicroelectronics Semiconductor Project includes a company specializing in the research and development, manufacturing, and sales of silicon carbide epitaxy, chips, and automotive-grade power chips, as well as a material supplier providing silicon carbide substrates for them. The project encompasses an automotive-grade power chip manufacturing company and a material supplier providing silicon carbide substrates. Among them, the automotive-grade power chip manufacturing company is jointly established by San'an Optoelectronics, a leading domestic compound semiconductor enterprise, and STMicroelectronics, an international semiconductor giant, with a planned total investment of about 3.2 billion USD. Upon reaching full production capacity, it will be able to produce 480,000 pieces of 8-inch silicon carbide automotive-grade MOSFET power chips annually, placing it at the leading level in the industry.The market penetration rate of 8-inch SiC wafers is about to match that of 6-inch wafers.

The increasing adoption of electric vehicles (EVs) is driving demand for key silicon carbide (SiC) power electronic components. How can semiconductor companies, automotive original equipment manufacturers (OEMs), and other businesses create value amidst the chaos?

The EV market is projected to grow at a compound annual growth rate (CAGR) of 20% by 2030, with xEV sales expected to reach 64 million units, which is four times the projected sales of electric vehicles in 2022. Ensuring the supply of EV components is sufficient to meet this rapidly growing anticipated demand is crucial, with the supply of silicon carbide (SiC) being particularly noteworthy. A recent McKinsey report has provided an analysis and explanation.

McKinsey estimates that from the forecast of 2018 to 2022, the share of EVs in the global light-duty vehicle market will grow 3.8 times by 2030, increasing from about 17 million to 64 million units.

In many countries, the total cost of ownership (TCO) of electric vehicles is expected to reach parity with internal combustion engine (ICE) vehicles by 2024 or 2025. Additionally, regulatory measures and investments in electric vehicles and charging infrastructure have been implemented as part of achieving net-zero emission targets, which are driving this growth.

According to McKinsey's analysis, there is an expected transition from the production and use of six-inch wafers to eight-inch wafers, with material proliferation beginning around 2024 or 2025, reaching a market penetration rate of 50% by 2030. Once the technical challenges are overcome, eight-inch wafers will offer manufacturers advantages in gross margin, including reduced edge loss, increased automation levels, and full utilization of depreciated assets in the silicon production process. McKinsey's analysis predicts that the gross margin benefits of this transition will be about five to ten percentage points, depending on the degree of vertical integration.

Mass production of eight-inch wafers in the United States is expected to begin in 2024 and 2025, with leading manufacturers in the industry starting production successively. After that, the output of eight-inch wafers is expected to climb rapidly, primarily to address demand and pricing pressures (especially from mid-range EV OEMs), as well as the cost savings achieved by transitioning to the manufacturing of eight-inch silicon carbide wafers.Leading Domestic Silicon Carbide Substrate Company, Tianyue Advanced, Sees Nearly Tripled Revenue Last Year

Tianyue Advanced released its annual report on the evening of April 11th, showing that the company's revenue scale nearly tripled in 2023, with losses narrowing year-on-year, and its global market share in silicon carbide substrate materials rising to the second position.

In 2023, Tianyue Advanced achieved a revenue of 1.251 billion yuan, nearly triple the previous year's figure. The net profit attributable to shareholders of the listed company was -45.7205 million yuan, with losses narrowing compared to the previous year. The basic earnings per share were -0.11 yuan, and the comprehensive gross margin was 15.81%. The company did not distribute dividends at the end of the period.

Tianyue Advanced is engaged in the business of silicon carbide semiconductor materials and has achieved mass supply of products such as 8-inch conductive substrates, 6-inch conductive substrates, 6-inch semi-insulating substrates, and 4-inch semi-insulating substrates. Its main customers include well-known clients in the fields of power electronic devices, 5G communication, and automotive electronics both domestically and internationally.

According to calculations by Fuji Keizai, a leading Japanese industry research institution, in the global conductive silicon carbide substrate materials market in 2023, Tianyue Advanced (SICC) surpassed Coherent in market share to become the second globally. The company's production of conductive silicon carbide substrates continues to climb, and its market share is gradually increasing.

In terms of products, the company's automotive-grade conductive silicon carbide substrate products have achieved industry leadership: 6-inch conductive substrate products are being supplied in large quantities to major international clients, driving the company's annual performance growth. Additionally, the company will gradually increase the production capacity of 8-inch products based on the situation of downstream market clients.