Korean semiconductor wafer maker SK Siltron has acquired the silicon carbide (SiC) wafer business of DuPont.
SK Siltron announced on Sept. 10 that its board of directors has approved a plan to take over DuPont’s SiC wafer business for US$450 million. SK Siltron plans to finalize the acquisition process later this year by receiving approval from relevant domestic and overseas authorities.
SiC wafers are gaining in popularity as wafers for power semiconductors used in electric vehicles whose energy efficiency is important due to their high hardness, voltage and heat resistance. Recently, demand for SiC wafers has been on a sharp rise due to the expansion of electric vehicle production by Tesla and other domestic and overseas automakers. But they are in short supply globally as only a few makers are able to mass-produce them.
SiC wafers are used in power semiconductors for electric vehicles. Experts say that the takeover of the SiC wafer business from DuPont will help SK Siltron expand its presence in this market, which has been dominated by U.S. and Japanese companies.
Market research firms IHS and Yole forecast that the global market for electric and telecommunication power semiconductors based on SiC wafers is expected to grow to US$5.2 billion in 2025 from US$1.3 billion in 2019.
SK Siltron is the only semiconductor wafer exporting company in Korea. It plans to create synergies with the R&D and production capacities of the newly acquired unit.