Electric vehicles will boost the market demand for automotive power semiconductors

TrendForce, a subsidiary of market analysis firm TrendForce, focuses on the impact of the distribution ratio between HEVs and new energy vehicles, as well as the new technology development direction of major automotive IDM manufacturers.

TrendForce reports that the electric vehicle sector is divided into two categories: HEV (hybrid electric vehicle) and new energy vehicles (BEV, PHV, FCV). Although it is a niche market that currently accounts for a small portion of total vehicle sales, the growth of automotive power semiconductor output value will be enhanced as electric vehicles grow year by year.

TrendForce, a market research company, has studied the impact of the distribution ratio between HEV and new energy vehicles, as well as the new technology development direction of major automotive IDM manufacturers.

Electric vehicles boost the demand for automotive power semiconductors, with the ratio of new energy vehicles to HEVs being the focus of observation

The current electric vehicle penetration rate is higher in HEV, which has lower motor power and battery capacity, and the new demand for power semiconductors needs to be supported by the total sales volume; on the other hand, new energy vehicles have very high demands for motor and battery capacity, and have a high demand for power semiconductors. Taking Tesla and BMW i3 as examples, the number of IGBTs used is about 120 to 150, which is 7 to 10 times that of previous vehicles and about 1.5 times that of HEV.

The development of electric vehicles has promoted the output value of automotive semiconductors. If we only look at the penetration rate of electric vehicles in the overall automobile output, the penetration rate of about 10% is not very significant, but considering the proportion trend of new energy vehicles and HEVs, the future growth momentum is worth looking forward to.

As of 2018, the penetration rate of new energy vehicles in electric vehicles was less than 50%. It is estimated that by 2022, the penetration rate will rise to nearly 80%. Coupled with the construction of public facilities such as charging piles, market demand will gradually increase, which will significantly boost the growth performance of automotive power semiconductors.

SiC helps the development of electric vehicles, Infineon and STMicroelectronics accelerate their deployment

In order to make new energy vehicles have longer battery life, battery modules are added to increase voltage and space requirements. In addition to excellent performance in the high-power and high-voltage range, SiC (Silicon-Carbide) power components also have the advantage of being small in size, making them suitable for flexible applications in electric vehicles.

Japanese manufacturers such as Mitsubishi, Fuji Electric, Rohm, and Renesas; automotive manufacturers Denso and Toyota have all been developing SiC power components for a long time. In addition, major IDM manufacturers such as Texas Instruments (TI), NXP, and Bosch, as well as Chinese manufacturers, all have layout strategies, and the market competition is fierce.

Infineon Technologies and STMicroelectronics, two leading groups in automotive power semiconductors, both pointed out the growth potential of their automotive power semiconductor revenues and the importance of SiC technology in the future in their 2018 financial reports.

Infineon has the advantage of being an epitaxial IDM factory in SiC power components. The financial report also mentioned the related applications of SiC power components in fast charging piles and high-voltage inverters. Although the installation cost is relatively high, it can accelerate the penetration rate of new energy vehicles.

STM also announced in February 2019 the acquisition of a majority stake in SiC wafer manufacturer Norstel AB, actively developing SiC power components. It is expected that driven by increased demand, Infineon and STMicroelectronics may continue to occupy a majority market share in the automotive power semiconductor field.