Infineon and Showa Denko reached a silicon carbide wafer supply agreement
Source: Global Semiconductor Observation and Finishing 2021-05-10
According to Nikkei News, Infineon and Japanese materials group Showa Denko have reached an agreement on the supply of silicon carbide wafers.
Showa Denko said on Thursday that the company has signed a two-year supply contract with Infineon to provide silicon carbide wafers to the latter. Whether for Showa Denko, the world's leading silicon carbide wafer seller, or for Infineon, the benefits of this cooperation agreement are obvious. In the contract, Infineon made a commitment to the annual minimum purchase volume, which enabled Showa Denko to have a clearer picture of future demand and formulate corresponding investment plans. Infineon has also solved the problems that may be faced in procurement by ensuring supply.
In addition, the two companies will also cooperate on the development of silicon carbide materials. Showa Denko hopes that, with the help of Infineon, "it can accelerate the improvement of product quality by fusing the knowledge of the two companies."
The cooperation between the two parties coincides with the rising period of global power semiconductor demand. Some organizations predict that from 2020 to 2025, the market for power semiconductors will grow by 40%, reaching US$24.3 billion. Among them, Infineon has already divided the biggest piece of cake. In the power device market, Infineon has about 20% of the global market share, far surpassing its Japanese competitors Mitsubishi Electric and Toshiba's 5% market share.
Regarding this cooperation, Peter Wawer, President of Infineon’s Industrial Power Control Division, said in a statement: “In this growing market, expanding the wafer supplier base with Showa Denko marks an important step in our diversified procurement strategy. "It will support us to reliably meet the increasing market demand in the medium to long term."