II‐VI has signed a deal worth $100m to supply silicon carbide (SiC) wafers to China for chips for electric vehicles.
The deal will see II-VI supply Dongguan Tianyu Semiconductor Technology with 150 mm SiC substrates to be delivered beginning this quarter and through the end of calendar year 2023.
Tianyu is one of China’s first and largest SiC epitaxial wafer manufacturers. “In November 2021, we were pleased to announce that Tianyu had selected II-VI as its primary strategic partner for the supply of 150 mm SiC substrates for power electronics,” said Sohail Khan, Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies Business Unit. “With the end-demand ramping up significantly, it became essential for Tianyu to secure its supply with this long-term, high-volume contract, which will be recurring and grow in value over time.”
- US restricts wide bandgap materials and EDA tools for 3nm chips
- II-VI bets a billion dollars on SiC
- II-VI expands SiC processing in China
To meet the market demand in Asia, II-VI established in 2021 a backend processing line for SiC substrates, in over 50,000 sq. ft. of new cleanroom space, at II-VI’s Asia Regional Headquarters in Fuzhou, China. Tianyu will benefit from II-VI’s 150 mm SiC global production capacity in both the U.S. and in China.
Tianyu and II-VI will provide the high-quality and reliable supply chain and future 200 mm capability that will be critical to support the rapidly growing demand for SiC power electronics in electric vehicles (EVs), renewable energy, smart grids, microgrids, and power supplies for data networks. Tianyu is well positioned to serve the power electronics market for EVs in China, today the largest in the world by far.
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- Bosch faces capacity crunch for SiC power chips
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