R&D, partnerships, and expansion: ST’s strategy for SiC growth

Silicon carbide, known for its superior efficiency in high-power applications, has become integral to the next generation of electric vehicles (EVs). Ferrara explained that demand for SiC is being driven by the global push for EV adoption, as well as by automakers’ transition from 400-volt to 800-volt battery systems. This shift improves energy efficiency, reducing losses and enabling faster charging – key factors for consumer adoption of EVs.

Despite some potential delays in adoption timelines, Ferrara is confident that market trends remain solid.

“The global trend is clear. Our customers are actively introducing new devices and sharing plans that align with our initial projections. While there may be slight timing adjustments, the volume levels we anticipated remain realistic,” he stated.

Beyond automotive, Ferrara sees opportunities for SiC in other high-power applications. “Sectors such as power drives, energy storage, and data centres, where SiC was previously deemed too expensive, are now opening up,” he said. As the cost of SiC continues to decrease and its benefits become evident, its adoption in non-automotive sectors is expected to rise substantially.

STMicroelectronics has been at the forefront of SiC innovation. In 2023, ST’s market share for SiC MOSFETs was over 50% and the company has set an ambitious target of generating USD 5 billion in annual SiC revenue by 2030. Ferrara credits this success to ST’s experience and its ability to align its offerings with customer needs.

“Our differentiation lies in our history, expertise and proven track record. Customers trust us because we not only deliver technology but also provide reliable, field-tested solutions. Many of our projects are built on solid foundations, ensuring that the numbers we commit to are materialised,” Ferrara explained.

The shift to 200mm production

A major milestone in SiC manufacturing is the transition from 150mm to 200mm wafers. Ferrara described this shift as crucial for scaling production and meeting demand.

“Moving to 200mm is a must. It’s a must for volume production. The latest equipment supports both 150mm and 200mm substrates, enabling greater output efficiency while optimising factory space,” he said.

The benefits of this transition extend beyond volume. Ferrara noted that the newer 200mm equipment enhances process reliability and yield, significantly improving defect management.

“By sealing defects during the fabrication process, we’re able to improve yields while leveraging the best technology for 200mm production. This is a big step forward in both capacity and quality,” he added.

Continuous R&D investments

Despite the progress made in SiC technology, Ferrara emphasised that further research and development remain critical.

“Silicon carbide still requires more care compared to traditional silicon. Continuous investment in R&D is mandatory to enhance device performance, increase power density, but also to attack the remaining marginal failure rate that is present compared to silicon,” he said.

ST’s efforts extend beyond internal R&D. The company collaborates with universities to address Europe’s engineering skill shortage. In Catania, Italy, ST has partnered with the local university to create a master’s program in Power Electronics.

“Three years ago, we started a Master's program in Power Electronics in collaboration with Catania University. And every year, people that attend this master's program are in most cases then hired by ST. So this is an important point of collaboration for us,” Ferrara said.

Addressing the Chinese market

Ferrara also highlighted the importance of ST’s joint venture with Chinese company Sanan. With China accounting for more than 40% of global EV sales, local presence is essential.

“To succeed in China, you need to be a local supplier. Our joint venture with Sanan ensures access to high-quality substrates and positions us as a player on the market,” Ferrara explained.

Through this partnership, ST gains a strategic advantage in serving the Chinese market while maintaining control over the production process. Wafers from the joint venture will be processed at ST’s backend fab in Shenzhen, enabling the company to meet the demands of this key region efficiently.

As the demand for SiC grows across automotive and industrial sectors, STMicroelectronics is doubling down on its investments, partnerships, and innovations. With its expertise, strategic foresight, and focus on technological excellence, the company looks to play a pivotal role in the global SiC revolution.