II-VI Expands Global SiC Production to Meet Market Demand
II-VI establishes its new backend processing line for conductive SiC substrates in Fuzhou, China.
II-VI Incorporated is a vertically integrated manufacturing company that develops products for industrial, life sciences, optical communications, aerospace & defense, semiconductor capital equipment, and other consumer applications.
The company engineers unique application-specific photonic and electronic materials and components. Recently, II-VI announced the expansion of its silicon carbide (SiC) wafer finishing manufacturing footprint in China. The company aims to provide technology for the growing electric vehicle (EV) market and clean energy applications.
Image used courtesy of II-VI
Global Electrification Trends
The forecast for EV sales looks to be on the rise within this century. In Deloitte's report on EV growth and sales, the company forecasts a compound annual growth rate of 29% achieved over the course of the next ten years. This projection sees EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. EVs would make up 32% of the global market share of new car sales. With the phasing-in of new European CO2 emissions targets, original equipment manufacturers (OEMs) are changing strategy and looking to avoid fines and damage to their reputation by pushing for electrification and reduction of emissions. Power electronics products using SiC are in high demand because they can increase the driving range of EVs by around 10% on a single charge compared with power electronics using silicon.
SiC-based power electronics products are also favorable because they enable high efficiency in inverters for solar and wind energy generation and smart grid power switching.
Meeting Market Demand
II-VI has set up a backend processing line for conductive SiC substrates at its Asia Regional Headquarters in Fuzhou, China. II-VI intends to use this new 50,000 sq. ft. space to ramp up production to meet market demand in Asia.
Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies Business Unit, II-VI, Sohail Khan. Image used courtesy of II-VI
In a recent news release, Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies Business Unit, II-VI, Sohail Khan commented: “According to recent industry reports, China is expected to continue to be the world’s largest electric car market at over 40% of global sales.” Khan added: “We are planning to substantially increase our global production capacity for SiC boules and substrates in the U.S. over the next 5 to 10 years to address the accelerating power electronics market, including for electric vehicles and clean energy applications. These investments will be supported by our global sales force and a SiC platform built by our innovations of the last 20 years, including the world’s first 200 mm conductive substrates in 2015. We are excited about our prospects to lead in one of the most promising markets of our generation.”
II-VI’s new Fuzhou facility will support its plans in ramping up SiC substrate manufacturing capacity by five to ten times over five years. This will include the production of 200mm diameter substrates.