Powering the Future

Following the ongoing development of technologies that will power the next generation of electronic devices, Power Semiconductor Senior Analyst, Callum Middleton questions if silicon, the semiconductor we’ve depended on for decades, is fit for the future? Or is it time to rethink our reliance on this extraordinary element?
 
When we began using silicon as a semiconductor in the 1960s, the computing, connectivity, innovation and intelligence it enabled changed the world. But the electronic devices that we’ll develop in the future must be able to operate more efficiently than the ones before and that means we need to find new ways to power them.
 
Device manufacturers are already turning to wide bandgap power semiconductors, which can operate at higher voltages and frequencies, and to two compounds in particular – silicon carbide (SiC) and gallium nitride (GaN). For many years, these new technologies have been regarded as the next big thing but they’re just beginning to disrupt the industry.
 
Technologies Disrupting the Power Semiconductor Market
 
The GaN power transistors market more than doubled in size between 2020 and 2022, reaching $110 million. In the same time period, the market for SiC discrete components grew at approximately 84% to almost $1.1 billion. And the market for SiC modules grew 87% to over half a billion dollars – that’s faster than all other power modules.

Now, the SiC and GaN semiconductors cost more than silicon, but that cost is reducing. It will continue to drop as more products are shipped.

Drive for Efficiencies
 
To date, the growth in the SiC market has been driven by demand from the automotive sector. More specifically, by the need for more efficient hybrid and electric vehicle (EV) powertrain systems that extend the vehicles’ range and performance. 
 
EV and energy firm, Tesla, was the first company to use SiC semiconductors in mass-produced cars. But others, including the VW group, have now signaled their intention to utilize the power semiconductors. 
 
It’s the first time there’s been such a clear requirement for improved devices. But companies in emerging industries can adopt these new compound semiconductor solutions from the outset and enabling drivers to travel further before recharging their vehicles, for example, is a tangible benefit that can help boost sales.
 
Similarly, GaN products help manufacturers offer improvements that consumers are willing to pay for. They’re being used in lower power devices including fast chargers for smartphones, tablets, and laptops. As well as improvements in efficiency, the technologies also enable manufacturers and brands to reduce the size of the device and the system surrounding the chips. Laptop chargers are a good example. They have evolved since their introduction – the size of the chargers has reduced, and the speed of charging has improved significantly over the years.
 
Ongoing Innovation in the Power Semiconductor Industry
 
Beyond consumer electronics, there are several other sectors that are likely to benefit from the innovation in wide bandgap power semiconductors:
 
EVs – we expect manufacturers to continue using SiC in their EVs, but GaN could also help power the next generation of vehicles. 
 
EV chargers – this is the second largest application. The new technologies enable quicker and more efficient charging of the EVs. 
 
Industrial power supplies – providing power supplies for factories is another major market – one that will help determine the success of the technologies. 
 
Renewable energy – more efficient technologies will help convert renewable energy sources such as wind and solar into electricity for the grid.
 
This is an interesting time for power semiconductor technologies due to what we know about developments in the industry – and what we don’t know yet.
 
Technology is changing the world around us at an unprecedented pace. There are exciting developments on the horizon that will shape the market for wide bandgap technologies, some within the next five to 10 years. 
 
For example, EVs are currently accelerating demand for SiC semiconductors but requirements may shift as the industry evolves to encompass more economical models of EV, electric lorries and autonomous vehicles. The ongoing development of hydrogen fuel cell vehicles could increase the demand for lower cost components. And the increasing use of drones to make deliveries may help to ensure the demand for silicon remains strong.
 
More certain, is the urgent need to minimize our impact on the environment. SiC and GaN have a role to play in enabling factories and data centers to run as efficiently and as cost-effectively as possible, and in accelerating the switch to renewable energy. 
 
Implications for the Ecosystem

So, is the electronics industry ready to embrace the new technologies? 

There’s already significant investment in SiC technologies and there have been several acquisitions of smaller firms. Specialist knowledge and equipment are needed to produce semiconductors made of the material and larger companies are creating extra capacity to serve the market.  
 
GaN chips can be produced in a similar way to current silicon devices, which means there’s less upfront investment in facilities and manufacturing is easier to outsource. Infineon, the largest of the firms developing wide bandgap semiconductors, recently announced its intention to acquire GaN Systems. But smaller companies could also thrive in this space in the coming years. GaN is an interesting technology and clever design could help position innovative firms as leaders.
 
Future of Silicon

Does this mean the end of the silicon chip in certain markets?
 
We believe wide bandgap semiconductors will outcompete silicon in new sectors such as the renewable energy market, but the more established semiconductor will maintain its hold in industrial settings, like factories, and be in increasing demand in applications that require lower cost components such as the drones described earlier.

We also believe the market for GaN will grow quickly and significantly and take more of the SiC share. This is primarily because of the ease of manufacturing and the opportunities for innovation.
 
However, the development of these technologies, potential changes in existing demand, and emerging markets are topics that will be discussed by Omdia’s analysts at the Power Electronics International event being held in Belgium this month. There’s no doubt it will be an interesting conversation. This is the first time there’s been major disruption in this market and now two new technologies are maturing at once.