Infineon Technologies AG has signed an agreement with Chinese silicon carbide (SiC) supplier SICC to diversify Infineon’s SiC material supplier base and to secure additional competitive SiC sources. Under the agreement, SICC will supply the Germany-based semiconductor manufacturer with competitive and high-quality 150-millimeter wafers and boules for the manufacturing of SiC semiconductors, covering a double-digit share of the forecasted demand in the long term.
The agreement will focus in the first phase on 150-millimeter SiC material, but SICC SiC material supply will also support Infineon’s transition to 200-millimeter wafer diameter. This will generally contribute to supply chain stability, in particular with regard to the growing demand for SiC semiconductor products for automotive, solar and EV charging applications as well as energy storage systems in the Chinese market, and will generally support the rapid growth of the emerging semiconductor material SiC.
“Infineon is significantly expanding its manufacturing capacities at its production sites in Malaysia and Austria in order to serve the growing SiC demand. In this context, we are implementing a multi-supplier and multi-country sourcing strategy to increase resilience for the benefit of our broad customer base and are securing new competitive top-quality sources globally, matching the highest standards in the market,” said Angelique van der Burg, Chief Procurement Officer at Infineon.
“SICC’s substrates are widely used in the Power SiC field. We are pleased to team up with Infineon as our customer, a global leader in power semiconductors. SICC will continuously expand capacity to add more value for its global customers. We value Infineon as an excellent leading strategic customer and we look forward to jointly enhancing SiC industry development and promoting global digitalization, low-carbonization, and sustainable development,” said Zong Yanmin, CEO of SICC.
Infineon is currently expanding its SiC manufacturing capacity in order to achieve its target of a 30 percent global market share by the end of the decade. Infineon’s SiC manufacturing capacity will increase tenfold by 2027. A new plant in Kulim, Malaysia is scheduled to start production in 2024, adding to Infineon’s manufacturing capacities in Villach, Austria. Infineon already provides SiC semiconductors to more than 3,600 automotive and industrial customers worldwide.