SILICON CARBIDE: FROM GOLD RUSH TO COMMODITY?
By Stephen Rothrock (ATREG, Inc.), Jean-Christophe Eloy (Yole Group), and Poshun Chiu (Yole Intelligence, part of Yole Group)
The extraordinary ascent of the nascent global silicon carbide (SiC) market is nothing short of remarkable. In 2019, chip maker Wolfspeed selected the Marcy Nanocenter site near Utica, New York to build the world’s largest 200mm SiC fab based on U.S. soil that was inaugurated in April 2022. Since then, the U.S. SiC gold rush has turned into a global investment frenzy, fueled mainly by increasing demand for electric vehicles (EVs). While it is clear that SiC is a critical technology for the future of semiconductors, does it run the risk of soon becoming a commodity as it moves into the power electronics mainstream? In this article, Stephen Rothrock, Founder & CEO of ATREG, Inc., Jean-Christophe Eloy, President & Founder of Yole Group, and Poshun Chiu, Senior Technology & Market Analyst at Yole Intelligence (part of Yole Group), take a deep dive into the global SiC market and provide their predictions for the future of the revolutionary technology.
Click here to read the full story.
BOSCH COMPLETES ACQUISITION OF TSI ROSEVILLE, CA FAB
ATREG is pleased to report that German company Bosch has completed the acquisition of the TSI Roseville, CA fab on August 31st. ATREG represented TSI in this fab transaction and brought Bosch to the table, ensuring a long-term future for the site. The new company renamed Robert Bosch Semiconductor LLC and its 250 original employees will be integrated into Bosch’s international semiconductor manufacturing network. Over the next few years, Bosch will invest more than $1.5 billion to upgrade the Roseville site by applying for federal funding under the CHIPS and Science Act. The Governor’s Office of Business & Economic Development (GO-Biz) already approved a $25 million California Competes Tax Credit incentive that will support redevelopment and investment at the Roseville fab. The plant will be transformed into a production facility for 200mm silicon carbide chips for electric vehicles.
Click here to read the Bosch press release.
GERMAN GOVERNMENT APPROVES ELMOS DORTMUND FAB SALE
On August 8th, the German Federal Ministry for Economic Affairs and Climate Action granted their approval under foreign trade law for the sale of Elmos Semiconductor SE’s Dortmund fab to U.S. company Littelfuse without conditions. In June, both companies had signed a purchase agreement for a net purchase price of approximately €93 million, a transaction that ATREG facilitated on behalf of Elmos. The deal is expected to close on December 31st, 2024. Under the agreement, Littelfuse will acquire the Dortmund wafer fab with approximately 225 employees. All other activities, including testing operations, will remain with Elmos.
Click here to read Elmos’ announcement.
JOIN US FOR OUR ATREG / WOLFSPEED FIRESIDE CHAT AT SEMICON EUROPA
You are cordially invited to join us from 1:20 to 2:20 pm on November 16th at this year’s SEMICON Europa in Munich, Germany for a candid fireside chat with Wolfspeed CFO Neill Reynolds, hosted by ATREG Founder & CEO Stephen Rothrock!
Semiconductor powerhouse Wolfspeed is nothing short of an American success story in the semiconductor manufacturing world. The company made headlines back in 2019 when it announced the selection of the Marcy Nanocenter site near Utica, NY for the construction of their state-of-the-art 200mm silicon carbide greenfield fab, part of a broader $6.5 billion global capacity expansion effort. Built in record time, the Mohawk Valley facility was inaugurated and started production in April 2022. Since then, the company has announced the construction of The John Palmour Manufacturing Center for Silicon Carbide in North Carolina to help expand the company’s existing materials capacity by more than 10-fold. Last February, Wolfspeed also announced the expansion of its global footprint with the planned construction of a 200mm SiC device manufacturing facility in Saarland, Germany in partnership with ZF to support increasing customer demand as well as the company’s long-term revenue outlook of $4 billion in fiscal year 2027.
Click here to view the full SEMICON Europa conference program. Click here to register for the event.
LET’S CONNECT AT GLOBAL INDUSTRY EVENTS!
The ATREG team is back on the road attending global industry conferences and ready to meet up to discuss your semiconductor fab and cleanroom manufacturing asset needs. We can assist your company with its global manufacturing strategy by helping you sell or acquire a brownfield facility, as well as select the best possible location in the world for a greenfield fab build. Just email us to set up an appointment with one of our fab transaction advisors at any of the following events. We hope to see you there!
- FOA Q4 Membership Meeting, October 11-12, Lubbock, USA
- GSA WLI WISH Conference, October 12, San Jose, USA
- Global Semiconductor & Electronics Forum (GSEF), October 26-27, San Diego, USA
- International Trade Partners Conference (ITPC), October 29 -November 1, Hawaii, USA
- SEMICON Europa, November 14-17, Munich, Germany
- SIA Awards dinner, November 16, San Jose, USA
- GSA Awards dinner, December 7, Santa Clara, USA
- SEMICON Japan, December 13-15, Tokyo, Japan