The following highlights from the event include some new product releases, the state of the semiconductor materials battle, and the end-user applications driving current and future market growth.
SiC and GaN semiconductor developers continue to make headlines.
In recent years, news headlines have been filled with announcements about silicon carbide (SiC) technologies and gallium nitride (GaN) startups, and this year's trade show was no exception. There are signs of greater maturity among SiC and GaN players. For example, more established manufacturers are progressing from product introductions to demonstrating practical applications of their chips in real-world customer equipment. Newer startups, which have not yet begun mass production, are now defining their application development niches.
The most significant new product launches include Infineon Technologies' first SiC MOSFETs, new all-in-one power SiC modules from Rohm Semiconductor and Wolfspeed (a Cree, Inc. company), and competitively priced 650V SiC JFETs from United Silicon Carbide, Inc.
There is evidence that the benefits offered by SiC and GaN power semiconductors are being increasingly recognized by customers. OEM/ODM design engineers are proactively requesting chip suppliers for products that offer improvements in power conversion efficiency and smaller sizes. According to IHS, the SiC and GaN power semiconductor market is estimated to exceed $1 billion by 2020.
Mergers and Acquisitions Don't Distract Designers:
The number of mergers and acquisitions in the semiconductor industry has been at record levels for the past two years. However, this situation doesn't seem to have distracted designers of power semiconductor products, as there appeared to be more new products launched at PCIM 2016 than usual.
New Si devices showcased for the first time included the following:
• Both ON Semiconductor and its acquisition Fairchild Semiconductor introduced new discrete insulated-gate bipolar transistors (IGBTs) for the automotive market. Both companies expressed optimism about their upcoming merger due to their limited product overlap. For example, ON Semiconductor has a broader portfolio and strength in low-voltage products used in computing, communications, and consumer end markets, while Fairchild is stronger in high-voltage products targeted at automotive and industrial applications.
• Littelfuse, Inc. unveiled its first discrete IGBT products.
• Infineon and Toshiba Electronics launched new Superjunction MOSFETs in new packages.
The automotive sector is driving growth in the power semiconductor industry.
Continuing a theme evident at last year's PCIM, the fastest-growing vertical market for power semiconductors is now the automotive sector. This is becoming increasingly important due to the growing number of semiconductors used in new vehicles. According to IHS, the automotive sector surpassed the IT sector as one of the third-largest end markets for power semiconductors in 2015, by total revenue.
The impending legislation to reduce carbon dioxide emissions from the European Union (EU) and other countries is pulling the market in two ways:
1. Overall engine efficiency needs improvement. Electric motors and pumps are replacing hydraulic systems in power steering and other systems in conventional gasoline-powered and diesel-powered vehicles. LEDs are replacing incandescent bulbs for both interior and exterior lighting (headlights). All these changes offer opportunities to increase efficiency with sophisticated smart semiconductor control.
2. Replacing conventional engines with electric motors is an obvious way for automakers to reduce vehicle emissions. Many automakers are offering hybrid and electric vehicles (HEVs) with semiconductor-controlled powertrains. Integrated battery chargers for HEVs are already using SiC diodes and SiC MOSFETs to reduce weight and size, as well as improve efficiency and power density.
Suppliers of GaN power semiconductors are anticipating a future when Si semiconductors in hybrid and electric vehicle transmissions will be replaced by GaN alternatives. They speculate that SiC devices might only be an intermediate step, as SiC transistors would perform best at battery voltages around 800-900V and above. HEV battery voltages are approximately 300V, meaning they would be better suited to GaN devices.
Solar Energy Storage Systems Emerge from the Shadows:
The solar market has been an important sector for power semiconductors for several years, but energy storage systems (ESSS) are a relatively new innovation. Off-grid ESSs use rechargeable batteries to store excess electricity generated from solar panels when the sun is shining, then supply usable power after sunset and on cloudy days.
ESSs are a growth area for power semiconductor suppliers and are gaining popularity in China and Southeast Asia, in particular. Remote villages and off-grid locations can install solar panels with an ESS to provide a continuous power source throughout the day. ESSs are approaching the price competitiveness of diesel generators, but are much cleaner, producing less air pollution and fewer emissions.
Final Conclusions from the PCIM:
Overall power semiconductor market revenues declined by 10 percent in 2015 compared to 2014. IHS's long-term market forecast for the next five years shows average annual growth of 5 percent.
Discussions between IHS analysts and PCIM companies revealed a divide in opinion regarding the market's future. While most companies agreed with the IHS projections, some expressed concerns about the outlook. The main factors contributing to this reduced optimism were overall global macroeconomic conditions, the weaker Chinese economy, and the strengthening US dollar against other currencies, particularly the euro and the yen.
By Richard Eden, Senior Analyst at IHS Technology
