INTELLIGENCE TO SHAPE YOUR TOMORROW

Power SiC/GaN
market update
JC Eloy, CEO and President
eloy@yole.fr

YINTM23314aQ1 | www.yolegroup.com | ©Yole Intelligence 2023

POWER DEVICE POSITIONING AS A FUNCTION OF POWER AND FREQUENCY
Home
Wind EV/HEV
Grid appliances
Rail
PV

GaN
HEMT UPS Power AC adapters
supplies
Switching power (kW)

Si GTO/IGCT for servers

103 SiC
Switching
Si Thyristor

102 power
Competitive zone
GaN Si/SiC/GaN supplies
101 Si IGBT/IPM
Planar Si
Bipolar
100 GaN Audio
Si MOSFET equipment
103 104 105 106

Operating frequency (Hz)

2
Power SiC Market Overview

3
 SiC modules in Automotive
BEV
(Battery Electric Vehicle) FCEV HEV

SiC in boost IGBT in

SiC in inverter IGBT in inverter IGBT in PCU
converter inverter

Tesla 3 Lucid Air Hyundai Ioniq 5 Audi e-tron Porsche Taycan Jaguar I-PACE Toyota Mirai II Toyota Prius 4

PCU
Generator Boost Converter &
Inverter Motor Inverter

IS06.3 - State of the Art of SiC Transistors and Modules: Technology and Cost Overview - Elena Barbarini, PhD 4
 Roadmap of BEV With System Voltage & Power Semiconductor Choice
SiC MOSFET
Tesla Model 3/Y
Nio ET7 BrightDrop EV600
BYD Han EV Lucid Air
?
Smart #1 EV

GMC Hummer EV
Hyundai Ioniq 5

400 V 800 V Kia EV6

Jaguar I-PACE Porsche Taycan

Audi e-tron GT

Hyundai Ioniq 5
And other BEVs in
the market…
Si IGBT Aion V plus
SIC DESIGN-WIN MATRIX AS OF Q1-2023
Leading SiC device players’ volume production at OEMs (non exhaustive list)

Non-exhaustive list
• As of 2023, major OEMs are looking for double-sourcing SiC devices for their current and future models to
be released.
• It’s a non-exhaustive list. Inverter
• The information is based on Yole’s understanding, sources from press releases and industry feedback.
OBC & DC-DC
• In Mar-23, Tesla stated the cost reduction on their next generation powertrain, which included 75%
reduction on SiC. However, the ODM didn’t share more details. Please refer to the slide for the scenario and
analysis based on currently available information. Link

Power SiC/GaN CS Market Monitor – Q1 2023 | Monitor | www.yolegroup.com | ©2023 6

POWER SiC DEVICE REVENUES - MARKET DYNAMICS

$10 000M
$9 000M
Power SiC component market

$8 000M 66% 70%

Revenue Growth (%)

$7 000M 57%
52%
$6 000M 40%
revenue ($M)

33% 30% 30%

$5 000M 23%
18% 20% 17% 18% 17%
15% 14% 11% 11% 13%
$4 000M
3%
8% 4% 9% 5% 9% 8% 8%
$3 000M 0%
-10%
$2 000M
$1 000M
$M -50%

STMicroelectronics Wolfspeed ROHM Infineon

www.yolegroup.com Onsemi Others Forecast Revenue growth (%)

7
QUARTERLY POWER SiC COMPONENT REVENUE

$1 400M
Power SiC device market revenue

$1 200M

$1 000M

$ 800M
($M)

$ 600M

$ 400M

$ 200M

$M
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
STMicroelectronics Wolfspeed ROHM Infineon Onsemi Others Forecast

8
POWER SiC SUBSTRATE SHIPMENTS – 6” INCH EQUIVALENT

Power SiC Wafer Shipment (Units) Forecast YoY growth (%)

3 000 000 80%

SiC power wafer shipment – 6” equivalent

70% 70%
2 500 000

60%

2 000 000 53%

YoY Growth (%)

50%
(Units)

1 500 000 41% 40%

38%

31% 30%
1 000 000
24% 25% 24%
22%
20%

500 000
10%
6%
0 0%
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

9
 TESLA’S NEW APPROACH TO USE 75% LESS SIC?
Yole’s scenarios
Source: Tesla Impacts:
• No short-term impacts on SiC
penetration for OEMs, especially for the
75% Reduction in coming 800V vehicles.
SiC • The trend is in line with our view of
For next transition of the focus, from raw
Tesla stated the generation Tesla materials to device and system
cost reduction on powertrain integration.
their next • Pressure on SiC IDMs to launch more
generation performance and cost competitive
powertrain, which solutions, the requirements will arrive
included 75%
with other OEMs.
Scenario 1: less device count
• Potential negative impacts on the wafer
reduction on SiC, Tesla is the first OEM implemented SiC in EV, the solution is based on most innovative shipment, if a more compact module
but what does that technology available in 2017. This 2-in-1 mini module, with 48 bare dies in the inverter is the
design almost 10 years ago. From today’s perspective, the level of integration is low and the design is taken.
mean? performance of SiC is also limited. • Minor impacts on SiC device market,
Meanwhile, 800V is the enabler for higher efficiency and fast charging, SiC is the best 1200V-rating SiC device and power
With limited details candidate. module have higher price.
in the presentation, Therefore, a full-SiC module with a lower bare die count, e.g., a reduction from 48 to 12 to • Opportunities for new technologies to
there are scenario replace the current solution with a more advanced design in terms of integration for a more
compact solution, could be a better option from cost and scalability perspectives. penetrate the market, e.g. trench SiC
and potential MOSFET for higher power density and
Scenario 2: smaller vehicle not requiring high power
impacted provided new materials. Power GaN could be the
Tesla wants to create more accessible vehicle for growing the car sales in volume, for option in a long-term perspective.
in this slide. example the new Model 2 or Model Q to be launched in the coming years will need the
maximum scalability with a lower cost to support the massive shipment. Therefore, a less • Some SiC companies’ valuations are
powerful car requires less SiC content. However, it’s unlikely implanted in current Model 3. also affected. It could lead to some M&A
Scenario 3: replacing SiC by other materials as SiC technology is still not fully
Both SiC and Si-IGBT are already the case for dual-motor models. Does it refer to the accessible to all end-system players.
opportunity for GaN-on-Si? In our estimation, GaN-on-Si in main inverter is in a 10-year
timeframe.

10
TESLA’S NEW APPROACH TO USE 75% LESS SIC?
Scenario analysis on the forecasts of SiC device market ($M) and wafer shipment
CAGR22-28
$7 000M
Scenario 1 is expected to impact more the
SiC Device market in Automotive
SiC power component demand in

$6 000M wafer shipment, than device market. Less

bare die count, from 48 to 12, directly leads to
$5 000M
less wafer demand. However, larger die size
Automotive ($M)

$4 000M to carry high power is needed to remain the

performance and reliability.
$3 000M
At device level, larger die size and higher
$2 000M
level of integration make the device price
$1 000M not decreasing as for wafer shipment. The
benefit is to have lower cost at system level,
$0M
2021 2022 2023 2024 2025 2026 2027 2028 in the inverter. It’s expected to remain the
Automotive Scenario #1 Scenario #2 Scenario #3
growth rate at 26% in the timeframe of 2022-
2028.
CAGR22-28
2 500 000
SiC wafer shipment in automotive
2 000 000
Scenario 2 & 3 depends on how quick the
Automotive (6”-eq. unit)
SiC wafer shipment in

time-to-market of Model 2. This model is

1 500 000
expected to be shipped in high volume in
1 000 000 long-term, in order to supply to majority of
customers. However, the ramp-up also
500 000 depends on how the OEM allocate the
production in different facilities. It’s expected
0 to reach more than 7% of Tesla’s total
2021 2022 2023 2024 2025 2026 2027 2028
volume.

11
DEMAND VS CAPACITY
The massive building-up in wafer capacity, especially the new entrants in China

Strong wafer capacity expansion likely to

lead to price reduction of SiC wafers and
devices
8 000
Actual volume of SiC wafer production in
units do not take into account the quality
and yield, especially for new entrants
6 000 In the near future, vertical integration may
not be so important (4’’ and 6’’ compared
to 8’’)

4 000
in 6"-eq. kunits

2 000

0
2021 2022 2023 2024 2025 2026 2027
| www.yolegroup.com | ©2023 12
SiC N-TYPE SUBSTRATE/BOULE CAPACITY FORECAST (6”-EQUIVALENT PER YEAR)

Company 2020 2021 2022 2023 2024 2025 2026 2027[2]

Qualifying 8” &
~160Kunits 900Kunits 1Munits
expanding to 500Kunits

Capacity expansion,
>70Kunits ~100Kunits ~1Munits
including 8”

~70Kunits ~300-400Kunits

~30Kunits >70Kunits ~200Kunits ~500Kunits ~800Kunits

120K units n-
~35Kunits 200 Kunit 200Kunits 300Kunits 500~600Kunits
type 6” eq
[4]
<10Kunits >50Kunits

[3] 70Kunits ~200Kunits ~400Kunits ~800Kunits 1Munits

* boule

20-25Kunits ~120Kunits
STMicroelectronics SiC AB

<10Kunits 100~200Kunits ~300Kunits 400~600Kunits

In our understanding, the supply matched the demand in 2022, and more volume will be delivered according to the expansion. Please note, capacity doesn’t Current capacity
equal production; utilization rate, yield, and quality are critical in SiC substrate production.
Looking into the coming years, the demand for high-quality substrate and 8” substrate will also grow quickly. Therefore, the supply chain could still be tight. Future capacity
[1] The capacity can also be used for semi-insulating SiC growth used for RF GaN applications. [2] Based on the industry feedback and estimation, non exhaustive list
Overall, most (80%) of the total capacity is estimated to be used for power SiC applications. [3]onsemi acquired GTAT for $415M in Q4-2021.
[4] Resonac, formerly Showa Denko, acquired the SiC substrate business of Nippon Steel in 2018. S.C. + S.I. substrates [1]
13
LEADING POWER SiC DEVICE SUPPLIERS’ CAPACITY FORECAST
Yole’s estimation Fab capacity
Future
8” production
expansion

Company 2022 2023 2024 2025 2026 2027

5 kwpm 6” – Durham US 15 kwpm (6” Durham + 8” Marcy) 30 kwpm 6”-eq (6”+8”) 2nd 8” wafer fab

>25 kwpm 6”-eq. – Catania IT (6”+8”) &

12 kwpm 6” – Catania, Italy Singapore 6”
~50 kwpm 6”-eq.

>50kwpm 6”-eq. – Villach (6”) &

7-8 kwpm 6” – Villach, Austria 15 kwpm 6” >20 kwpm 6” Kulim, Malaysia (6”+8”)
8kwpm 6” – Bucheon,
Korea
20 kwpm 6” 40 kwpm 6”-eq. – 8” in production

5 kwpm 6” – Matsumoto JP 8”

Fabless 10 kwpm 6” – Fab5 fab transfer Future expansion

2 kwpm 6” – Apollo 10 kwpm 6”-eq. -

8 kwpm 6”-eq. 15kwpm 6”-eq.
Chikugo, Japan Chikugo (6”+8”)

5kwpm 6” – Reutlingen DE 10 kwpm 6”-eq. 8”

0.5 kwpm 6” – Dongsheng CN 6”

3 kwpm 4” – Bend, US 6”

3kwpm 6” – Lubbock US 5-6k wpm 8”

12 kwpm 4” – DF1 CN 6” – DF2 CN

Following the expansion at substate level, the capacity at device level is accelerated due to the CAPEX announced by leading players.

14
Power GaN Market evolutions

15
POWER GaN DEVICE MARKET DYNAMICS

$2 500M 160%
GaN power device market Revenue ($M)

$90M 50% 152%

47%

Power GaN Device Market Revenue ($M)

$80M 140%
137%
40% $2 000M
$70M 120%

Q/Q growth (%)

$60M 29% 30%

YoY growth (%)

100%
$1 500M
$50M 24% 25% 24%
20%
18% 18% 80%
$40M 16% 15% 15%
12% 13% $1 000M 66% 67%
$30M 11% 10% 10% 60%
50% 51% 49%
$20M
0% 40% 40%
-1% 36%
$10M $500M
-5%
20%
$M -10%

0%
Power Integrations Navitas Innoscience 2020 2021 2022 2023 2024 2025 2026 2027 2028
EPC Transphorm GaN Systems Power GaN Device Market Revenue ($M) Forecast YoY growth (%)

Infineon Others Forecast

16
 POWER GaN SUPPLY CHAIN AND BUSINESS MODELS AT A GLANCE
Substrate Chip Diode/Transistor/IC Device/Module
GaN epitaxy System
supply processing design packaging

Danxi
GaN-on
-Si
-Sapphire
GaN-on

* PI has internal epitaxy

and processing
capabilities

• Non-exhaustive list, including R&D • STMicroelectronics acquired the majority share in Exagan in Q1-20.
• Most GaN epihouses could also have GaN-on-sapphire capability. • EPC has an asset-light vertically integrated model working exclusively with Episil and 17
• Infineon and Panasonic are partnering on an 8” platform internal epitaxy capabilities at Epi-Precision
POWER GAN DEVICE MARKET SHARE IN 2022 : INFINEON’S MOVE

4%
3%
9% 21%
Larger portfolio
Team expertise
Patents
16%
Clients/ongoing projects,
Especially for onboard charger 17% $175M

17%

13%
15%

18
 INFINEON – POWER GaN DEVICE REVENUE

$3,5M 80% $7M 100%

GaN power device revenue - Quarterly

Power GaN device revenue- Annually

$3,0M 70% 91% 90% 90%
$3,0M $6M
60% 83%
80%

Revenue Growth(%)
$2,5M 52%

Revenue Growth(%)
50% $5M 70%
47%
$2,0M 40%
$2,0M 36% 38% 60%
$1,7M $4M
($M)

($M)
30% 50% 50%
$1,5M 23% 25% 24%
$1,2M $1,3M 20% $3M $6,0M
40%
$1,1M $1,0M 14%
12% $,9M 10%
$1,0M $,8M $2M 30%
5% $4,0M
4% $,7M
$,5M $,5M 0% 20%
$,5M $,4M -6% $2,1M
$1M
-10% -10% 10%
$1,1M
$,0M -20% $M 0%
Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2019 2020 2021 2022
Infineon GaN Power device revenue ($M) Revenue growth (%) Infineon GaN Power device revenue ($M) Revenue growth (%)

19
 GAN SYSTEMS – POWER GaN DEVICE REVENUE

$8,0M 100% $25M 250%

$7,3M $22,0M
89% $7,0M

Power GaN device revenue -

GaN power device revenue -

$7,0M 80%
$6,2M $20M 200% $19,0M 200%

Revenue Growth(%)
$5,7M

Revenue Growth(%)
$6,0M
60%

Annually ($M)
Quarterly ($M)

$5,0M 47% $4,4M $4,6M $4,6M $15M 150%

41% $4,4M
$4,0M 40%
$4,0M 30% 33%
27% 111%
$3,0M 20% $10M $9,0M 100%
17% 18%
$3,0M 88%
$2,2M $2,3M
8%
0% 0%
$2,0M $1,5M -4%
$5M $3,0M 50%
-13%
$1,0M -20% -20%
16%
$,0M -40% $M 0%
Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2019 2020 2021 2022

GaN Systems GaN Power device revenue ($M) Revenue growth (%) GaN Systems GaN Power device revenue ($M) Revenue growth (%)

20
A conclusion

21
2019-2021 KEY PLAYERS AND THE POWER ELECTRONICS LANDSCAPE

Significant SiC revenues

Increased capacity over

the 2019-2021 period

Will increase capacity

in the next one to
three years

Diodes acquired Lite-On 300mm

Company revenues from

discrete power components
and modules.

Some capacity increases

were completed at the end
of 2020, so these are only
minimally reflected in the
2021 revenues.

22
DEVICE REVENUE MARKET SHARES : SiC VS. GaN VS. Si

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

SiC GaN Si based

23
INTRODUCTION TO YOLE GROUP

24
YOLE GROUP’S MAJOR ACTIVITIES PER ENTITY

Market, technology, and Technology, process & cost

strategy consulting analysis
M&A and evaluation Teardown and reverse
of companies engineering

Direct acces to the analysts Comparative analysis

Characterization of electro-optical Specification, design and industrialization of systems

performances and risks Performance analysis of photonic systems

25
A WORLDWIDE PRESENCE

180+ collaborators in 9 different countries

London Frankfurt
Boise
Nantes
Lyon Seoul Phoenix Boston
Austin
Raleigh
Shanghai Tokyo

Hsinchu

Melaka

26
A COMPLETE SET OF PRODUCTS & SERVICES TO ANSWER
YOUR NEEDS
REPORTS
Insight
› Yearly reports
› Market, technology and
strategy analysis
› Supply chain changes analysis
› Reverse costing and reverse
engineering
Format
› PDF files with analyses
› Excel files with graphics and
data
Topics
› Photonics, Imaging & Sensing
› Lighting & Displays
› Power Electronics & Battery
› Compound Semiconductors
› Semiconductor
Manufacturing and Packaging
› Computing & Memory
115+ reports per year
MONITORS
Insight
› Quarterly updated market data
and technology trends in units,
value and wafer
› Direct access to the analyst
Format
SERVICE
› Excel files with data
› PDF files with analyses graphs
S
and key facts
› Web access (to be available
soon)
Topics
› Advanced Packaging
› Application Processor
› DRAM & NAND
› Compound Semiconductor
› CMOS Image Sensors
› Micro-controller
› Semiconductor Test Equipment
7 different monitors
quarterly updated
TRACKS
Insight
› Teardowns of phones, smart
home, wearables and
automotive modules and
systems
› Bill-of-Materials
› Block diagrams
Format
› Web access
› PDF and Excel files
› High-resolution photos
Topics
› Consumer: Smartphones,
smart home, wearables
› Automotive: Infotainment,
ADAS, Telematics
205+ teardowns per year
Daily updates
CUSTOM
SERVICES
Insight
› Specific and dedicated projects
› Strategic, financial, technical,
supply chain, market and other
semiconductor-related fields
› Reverse costing and reverse
engineering
Format
› PDF files with analyses
› Excel files with graphics and
data
Topics
› Photonics, Imaging & Sensing
› Lighting & Displays
› Power Electronics & Battery
› Compound Semiconductors
› Semiconductor Manufacturing
and Packaging
› Computing & Memory
190 custom projects
per year
27