Infineon Technologies signed a supply agreement with Japanese wafer manufacturer Showa Denko for a range of silicon carbide (SiC) material. The German semiconductor manufacturer says this secures further raw material given the increasing demand for SiC-based microchips.
According to Infineon, the contract has a term of two years and includes the option of an unspecified extension. The German chip expert did not provide details on the quantities to be supplied or the financial scope of the agreement.
SiC enables efficient and robust power semiconductors for various areas, including charging infrastructure and applications in the field of photovoltaics or industrial power supply. SiC semiconductors are also increasingly used in electric cars, for example, in inverters and power electronics.
Infineon itself expects the market for SiC-based semiconductors to grow by 30 to 40 per cent annually over the next five years. “The expansion of our supplier base with Showa Denko for wafers in this growth market marks an important step in our multisourcing strategy,” said Peter Wawer, president of Infineon’s Industrial Power Control Division. “It will support us to meet the growing demand mid to long term reliably. Furthermore, we plan to collaborate with Showa Denko on the strategic development of the material to improve the quality while cutting costs at the same time.”
Supplier Showa Denko also emphasises that they are constantly striving to develop the material further. “We are proud to be able to provide Infineon with Best-in-Class SiC material and our cutting-edge epitaxy technology, ” says Jiro Ishikawa, senior managing corporate officer of Showa Denko K.K. “Our aim is to improve our SiC material and develop the next technology continuously. We value Infineon as an excellent partner in this regard.”
Just last week, Infineon had introduced a new SiC power module for 800-volt power supplies. The power module is used in the Hyundai Ioniq 5, among others.