The battle for SiC – the market landscape continues to change
With increased demand from booming markets such as EVs and renewable energy, the compound semiconductor business has been thriving in recent years. As businesses fight to cement their place in the sector, M&A activity has increased.
Over the past several years, the market has witnessed a considerable increase in M&A transactions. Between 2006 to 2017, there was only one transaction every two years, but since 2018, there have been six transactions yearly, exceeding historical records, as pointed out by TrendForce.
Out of 31 SiC and GaN M&A transactions since 2006, 21 of the deals have a direct SiC connection. This is mainly due to after its development over 20 years, SiC has been able to be mass-produced for market demands, especially in the automotive sector where SiC has established itself as a mainstream technology.
As seen by the frequency of M&A, US and European industry heavyweights including Wolfspeed, Onsemi, II-VI, STMicro, and Infineon have started accelerating vertical integration in recent years.
Looking at the US, 12 M&A transactions have occurred, with only four of them taking place before 2018, and Wolfspeed was involved in three of them. To address market demands, Onsemi, II-VI, and Macom have led various deals over the last three years with an emphasis on SiC's vertical integration.
Since 2006 there have been eight M&A transactions in Europe in total, all of which occurred in 2018 and later, with ST and Infineon serving as the key participants. To keep their competitive edge in the SiC power device sector, both businesses have been strategically acquiring technological expertise.
As pointed out by TrendForce and illustrated by the data is that major businesses in the sector are primarily responsible for the high frequency of M&As in the US and Europe, which are steadily reshaping the market's landscape.
Attention should also be directed to M&A deals amongst semiconductor equipment businesses. Recent acquisitions of LPE and Epiluvac by ASM and Veeco show that equipment makers have also recognised the enormous potential of the SiC sector and are stepping up their investment.
According to the most recent data from TrendForce, the overall market for SiC power devices is expected to increase at a rate of 41.4% per year to reach USD 2.28 billion by 2023 and USD 5.33 billion by 2026, with a 35% annual growth rate.
But the present market boom also brings a new problem: a lack of supply. Despite attempts by corporations to increase production, one of the main barriers to industry expansion is the lack of SiC substrate material.
| Region | Acquiring company | Year | Target company | Targeted business |
| USA | Wolfspeed | 2006 | Intrinsic Semiconductor | SiC Substrate |
| 2016 | WATER | SiC power module | ||
| 2018 | Infineon (RF Division) | GaN-on-SiC RF devices | ||
| On Semi | 2021 | GTAT | SiC ingot | |
| II-VI | 2020 | INNOViON Corporation | Ion Implanter | |
| 2020 | Ascatron AB | SiC epitaxy | ||
| Qorvo | 2021 | UnitedSiC | SiC power device design | |
| Transphom | 2021 | AFSW | GaN wafer fabrication | |
| MACOM | 2023 | OMMIC SAS | GaN and GaAs manufacturing | |
| Veeco | 2023 | Epiluvac AB | Epitaxial equipment | |
| Navitas | 2022 | GeneSiC | SiC device design | |
| Littelfuse | 2018 | Monolith Semiconductor | SiC power device design | |
| Europe | ST | 2019 | Norstel AB | SiC wafer fabrication |
| 2020 | Exagan | GaN power device design | ||
| Infineon | 2018 | Siltectra GmbH | SiC wafer cold cutting | |
| 2023 | GaN Systems | GaN power conversion solution | ||
| Soitec | 2019 | EpiGaN | GaN epitaxy | |
| 2021 | NOVASiC | SiC wafer polishing | ||
| BelGan | 2022 | On Semi (Factory in Belgium) | GaN wafer fabrication | |
| ASM | 2022 | LPE | SiC epitaxial equipment | |
| Japan | Showa Denko | 2008 | ESICAT Japan LLP | SiC epitaxy |
| 2017 | Nippon Steel Sumitomo Metals (SiC manufacturing business) | SiC crystal growth by PVT method | ||
| Rohm | 2009 | SiCrystal | SiC substrate | |
| Kyocera | 2020 | SLD Laser | GaN laser source | |
| Advantest | 2022 | CREATES | Semiconductor test | |
| South Kora | SK Group | 2019 | DuPont (SiC Division) | SiC substrate |
| 2021 | Yes Power | SiC design and manufacturing | ||
| LX Semicon | 2021 | LG Innotek (some equipment and patents) | SiC power device design | |
| IV Works | 2022 | Saint-Gobain (GaN substrate business) | GaN substrate | |
| China | China Resources Micro | 2022 | Runxin Micro | GaN device design and fabrication |
| Jingfang Technology | 2023 | VisIC (51.7% stake) | GaN power device design |
