Biden Visits SK Siltron CSS Factory
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed.
US President Biden’s visit to SK Siltron CSS has heightened interest in SiC semiconductors. Wolfspeed in the US and SK and LX Semicon in Korea are boosting their investments in related markets. We expect these companies to reap the benefits of long-term market growth.
Biden visits SK Siltron CSS factory
On Nov 29 (local time), US President Biden visited the US factory of SK Siltron CSS, emphasizing his administration’s focus on creating a semiconductor supply chain centered in the US, rather than other countries such as China. To achieve this aim, Biden intends to further promote semiconductor-related policy and encourage foreign semicon firms to increase their investment in the US.
The visit marked Biden’s first trip to a Korean semiconductor company’s US manufacturing plant, and as a result of the visit, interest in SK Siltron CSS and its products has expanded. SK Siltron CSS was established in 2020 when SK acquired DuPont’s wafer division for US$450mn. Its main products, SiC wafers, are emerging as compound power semiconductor materials at the core of the SiC semiconductor arena. After US Wolfspeed (number-one market position), SK Siltron CSS ranks third in terms of market share.
Interest rising in SiC semiconductors
Manufactured using wide band gap materials such as SiC, compound power semiconductors offer greatly improved ability to withstand high voltages compared to conventional Si semiconductors. GaN and 4H-SiC band gaps stand at 3.4eV and 3.2eV, respectively, higher than that of silicon (1.1eV). If the ability of semiconductors to withstand high voltages is improved, chips, peripheral circuits, and components such as heat sinks can all be further miniaturized. Of note, SiC is actively applied to EV inverters, which require high voltages. Forecast agency Yole predicts that the related market, currently worth W1.1tn, will grow to W12.8tn by 2030.
Companies in several countries are aiming to boost related investment in order to capture this promising growth market. Wolfspeed, the market leader, has decided to invest US$5bn in new fabs, starting with a US$2bn investment in a new fab in North Carolina. The new fab produces 200mm wafers, which are larger than the company’s existing flagship wafers (150mm). Having selected SiC as its main growth engine, SK is ramping up its investment with the goal of claiming the number-two market share by 2025. DDI maker LX Semicon is also investing in the SiC market. LX Semicon has acquired patents and related equipment owned by LG Innotek, as well as a stake in FJ Composite Materials, a Japanese company that owns EV inverter module materials and fuel cell separator technologies.