SiC powers the EV revolution and ST aims to meet demand

During his presentation titled "Silicon Carbide Evolution in E-Mobility Trends," Ferrara provided insights into the rising demand for SiC in EVs, the challenges of manufacturing compared to traditional silicon, and STMicroelectronics' strategy for vertical integration and capacity expansion.

Silicon Carbide demand on the rise

Ferrara highlighted the steep increase in demand for SiC in the automotive industry, particularly as electric vehicles gain market share. He noted that the content of semiconductors in general, and SiC especially, in EVs is expected to significantly increase, driven by applications such as traction inverters, onboard chargers, and DC-DC converters. By 2030, demand for semiconductors, related to electric vehicles, is expected to grow from USD 32 billion in 2023 to USD 100 billion, with a compound annual growth rate (CAGR) of around 16%. 

Technological advancements and challenges

Ferrara explained that the ongoing evolution of EVs continues to synthesize the applications. More and more applications are now utilising SiC-based technology and with that demand is increasing. 

SiC-based technology will allow for better efficiency, higher integration, and greater modularity. And this will affect everything from the powertrain, traction inverter, on-board chargers as well as DC-DC conversion applications. But that’s not all, also new applications will be using more and more power devices – such as fuel cells, disconnect systems for the battery, DC link discharge systems and E-compressors.

“So, several new applications will be powered by silicon carbide in the future, on top of the traditional three main applications that are using the technology today.”

Mr Ferrara brings the audience's attention to a market report from analyst Omdia from the end of 2023. According to the report, the market for SiC MOSFETs is expected to grow from roughly USD 2 billion two years ago, to USD 20 billion dollars in 2030.

“The majority of this will be full SiC power modules, so 50% will be modules, while the remaining will be SiC MOSFETs and discretes. With a CAGR in the period 2023-2030 that is above 30%.”

Looking at the main applications, the majority of this market is expected to be focused on automotive, or rather the electrification of it. More than 75-80%, or USD 15 billion of the SiC market, is expected in 2030 to be for automotive applications. 

However, the manufacturing of SiC presents unique challenges compared to traditional silicon. SiC production requires a complex sublimation process that is time-consuming and yields smaller ingots. Ferrara emphasized that controlling costs and ensuring quality are critical challenges in SiC manufacturing.

STMicroelectronics’ vertical integration and expansion plans

To address these challenges and meet growing demand, STMicroelectronics has committed to a vertically integrated production model, starting from raw materials to the final product. The company’s decision to produce SiC substrates in-house aims to control costs, ensure supply independence, and enhance product quality. 

As Mr Ferrara puts it: “We are the leader in the market with the market share close to 50%, so we cannot be dependent only on external suppliers.”

STMicroelectronics has a long history related to SiC, going back more than 25 years. The company introduced its first SiC diodes in 2004, after several years of research and development on silicon carbide technology.

The company currently operates a strategic SiC R&D center in Sweden and three manufacturing hubs in Italy, Singapore, and China, supported by high-volume assembly and test operations in China and Morocco, with plans for significant expansion. The company’s new SiC campus in Catania is set to start production by 2026, with an investment of EUR 5 billion over the next decade, partially funded by the European Union. Once completed it will include substrate manufacturing, a high-volume 200mm silicon carbide manufacturing facility for power devices and modules, as well as test and packaging. Full buildout of the new campus is expected to ramp to full capacity by 2033 Ferrara says.

Ferrara concluded by stating that innovation will be key to maintaining Europe’s competitive edge in SiC production, even as competition from Asia intensifies. STMicroelectronics aims to meet the rising demand for silicon carbide while continuing to lead in quality, reliability, and technological advancement.

Looking Ahead

With the electric vehicle market growing rapidly and the shift toward carbon neutrality gaining momentum, SiC is poised to play a pivotal role in the future of transportation electrification. STMicroelectronics is positioning itself to meet this demand with its cutting-edge SiC technologies, supporting the transition to a more sustainable, electrified automotive industry.