The third generation semiconductors are expected to continue to reduce costs for 3-5 years to keep pace with the layout of the silicon-based industry.

Global power semiconductor IDM leaders and other track leaders continue to add third-generation materials. According to the Electronic Times, Chen Zhixing, Associate Manager of Infineon Greater China Power and Sensor Systems, said a few days ago that Infineon expects to have the opportunity to reduce the cost of SiC (silicon carbide) and GaN (gallium nitride) to a level similar to that of silicon-based components in three to five years. The company has Cool SiC, Cool GaN series of product lines into mass production.

Just last week (August 5), Hon Hai, a subsidiary of Fuji Kang, acquired Wang Hong's 6-inch fab. Chairman Liu Yangwei said bluntly that the plant planned to be used for the research and production of third-generation semiconductors, especially silicon carbide power components for electric vehicles.

On July 27th, St announced that it had produced the industry's first 8-inch SiC wafers.

The third generation semiconductor that makes people "love and hate"

Compared with silicon (Si), silicon carbide is the most mature WBG wide band gap semiconductor material with excellent high temperature resistance. It has been widely used in the manufacture of switching devices, such as MOSFET and thyristors. Because of its irreplaceable efficiency and power density, gallium nitride has the potential to be used as a semiconductor of power devices and is a major improvement of silicon in RF applications.

Comparison of properties of SiC, GaN and traditional Si materials

The performance advantage has opened up a broad application prospect for the third generation semiconductors represented by silicon carbide and gallium nitride. a number of analysts have expected that silicon carbide in the automotive field is expected to enter the first year of volume production in 2021, but the complex manufacturing process and higher raw materials and technical requirements have greatly increased the difficulty of mass production of the third generation semiconductors, further driving up the cost. Specifically, the production of gallium nitride is difficult in the lattice and substrate, while silicon carbide needs high purity seeds, and the time of growing crystal is also very slow.

Chen Zhixing said that the price difference between silicon carbide and gallium nitride is small, but the gap between silicon products and silicon products does exist. At present, the price of silicon carbide and gallium nitride related wide band gap (WBG) power components has dropped greatly, and the cost is still the key to open the market.

According to CASA, the price of silicon carbide has declined rapidly in recent years, falling by more than 50% in 2020 compared with 2017. With the improvement of the quality of 6-inch substrate and epitaxial wafer and the large-scale production of 8-inch production line, the cost reduction effect is expected to appear and promote the popularization of silicon carbide devices and modules.

The cost reduction effect of silicon carbide is expected to appear, but standing at the moment, considering the cost-effective factor, the products of Si, SiC and GaN will still coexist for a long time.

Current situation and investment opportunities of the third generation semiconductors

The current global silicon carbide industry pattern presents a tripod situation of the United States, Europe and Japan. Domestic enterprises have some layout in the aspects of substrate, epitaxy and devices, but the volume is small.

At the technical level, silicon carbide used to be produced in 2-or 4-inch factories, but now 6-inch silicon carbide is the mainstream, and first-class manufacturers are promoting mass production of 8-inch silicon carbide wafers. In terms of silicon carbide substrate and epitaxy, it is still mainly 4 inches in China, and 6-inch products have been developed and supplied in small quantities; gallium nitride substrates produced in China are still mainly 2 inches.

In terms of industry, at present, CREE and other large international manufacturers and domestic enterprises have made great efforts to distribute silicon carbide. With the continuous construction of new projects in various parts of the country, the upsurge of silicon carbide investment and production expansion has already hit.

Specific to investment opportunities, Tianke Heda, Lou Xiao Technology, San'an Optoelectronics and other manufacturers mainly produce conductive silicon carbide substrates, while Shandong Tianyue mainly produces semi-insulating silicon carbide substrates. Tianke Heda, Lou Xiao Technology and Jingsheng mechanical and electrical layout silicon carbide crystal equipment. In terms of production capacity / income: in 2020, Shandong Tianyue is about 430 million yuan, Tianke he is up to 160 million yuan (2019), the output value of 500 furnaces of Lulu Technology is estimated to be about 1.5 billion yuan (250000 pieces / year), and the annual production capacity of San'an optoelectronic substrate is planned to be about 36000 pieces.

In addition, Liu Kai, an analyst at Everbright Securities, also suggested paying attention to device manufacturers such as San'an Optoelectronics, BYD Semiconductor, Wentai Technology, Huarun Micro, Shilan Wei, Starr Semiconductor, Yangjie Technology and so on.