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Aehr Test Systems announced financial results for its fiscal 2024 fourth quarter and full year ended May 31, 2024.
Fiscal Fourth Quarter Financial Results:
- Net revenue was $16.6 million, compared to $22.3 million in the fourth quarter of fiscal 2023
- GAAP net income was $23.9 million, or $0.81 per diluted share, which includes the impact of a tax benefit resulting from the release of the Company’s full income tax valuation allowance of approximately $20.8 million, compared to GAAP net income of $6.1 million, or $0.21 per diluted share, in the fourth quarter of fiscal 2023.
- Non-GAAP net income was $24.7 million, or $0.84 per diluted share, which includes the tax benefit and excludes acquisition related costs and the impact of stock-based compensation, compared to non-GAAP net income of $6.8 million, or $0.23 per diluted share, in the fourth quarter of fiscal 2023.
- Bookings were $4.0 million for the quarter
- Backlog as of May 31, 2024, was $7.3 million. Effective backlog, which includes all orders received since the end of the fourth quarter, is $20.8 million.
- Total cash and cash equivalents as of May 31, 2024 were $49.2 million, up from $47.6 million at February 29, 2024
Fiscal Year Financial Results:
- Net revenue was a record $66.2 million, compared to $65.0 million in fiscal 2023
- GAAP net income was $33.2 million, or $1.12 per diluted share, which includes the impact of a tax benefit resulting from the release of the Company’s full income tax valuation allowance of approximately $20.8 million recognized in the fourth quarter, compared to GAAP net income of $14.6 million, or $0.50 per diluted share, in fiscal 2023.
- Non-GAAP net income, which includes the tax benefit and excludes acquisition related costs and the impact of stock-based compensation, was $35.8 million, or $1.21 per diluted share, compared to non-GAAP net income of $17.3 million, or $0.59 per diluted share, in fiscal 2023.
An explanation of the use of non-GAAP financial measures and a reconciliation of Aehr’s non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying tables.
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
“Our full-year revenue and net income results exceeded our previously provided guidance and surpassed analyst consensus. Although we saw customer pushouts of silicon carbide devices due to slower electric vehicle (EV) demand in the second half of our fiscal year, we achieved another record year for annual revenue for Aehr.
“Wafer level test and burn-in of silicon carbide power semiconductors used in EVs was a key driver of our business in the last year, and we anticipate silicon carbide will continue to be a key contributor to revenue in the current fiscal year and beyond. To that point, we announced today that we received $12.7 million in orders from one of our silicon carbide test and burn-in customers for FOX WaferPak™ full wafer Contactors to support production of silicon carbide power devices for electric vehicles to be delivered over the next three months.
“The silicon carbide market continues to be an enormous opportunity for Aehr as we see more auto suppliers committed to silicon carbide in their EVs, as well as roadmaps that are based on modules for their electric motor power inverters. By 2030, battery EVs are forecasted to more than triple last year’s sales to 30 million or 30% of total vehicles manufactured worldwide.
“We remain actively engaged with a significant number of new silicon carbide device and module suppliers and seek to meet their anticipated capacity coming online beginning in 2025. We are also seeing growing demand for silicon carbide devices beyond the EV market, such as solar, data center, and other industrial applications for power conversion. We believe we are well positioned to continue to grow our business in silicon carbide, and we expect to receive first orders from a significant number of additional silicon carbide customers by the end of this fiscal year.
“We are also seeing traction with several emerging opportunities for our test and burn-in solutions in new target markets and expect bookings and revenue across a much broader range of customers and markets this fiscal year.
“One of the key new market opportunities we are focusing on is the growing demand for Artificial Intelligence (AI) processor test and burn-in at both the wafer level and the packaged part level.
“We are currently working with an AI accelerator company and have secured a commitment from them to evaluate our FOX solution for use in production wafer level burn-in of their high-power processors. Upon successful demonstration of wafer level test results and throughput, we expect they will utilize our new high-power FOX-XP systems for production of their next generation AI processors, starting this fiscal year.
“We also announced today in a separate press release our acquisition of Incal Technology, a manufacturer of highly acclaimed reliability test and burn-in solutions of a wide range of semiconductor devices and markets, with a new product family of ultra-high-power test solutions for AI accelerators, graphics & network processors, and high-performance computing processors. We believe that between wafer level and package part, the reliability test and production burn-in market for AI processors exceeds $100 million annually, and with this combined product portfolio we believe we have the opportunity to capture a meaningful share of the market this fiscal year.
“This past year we announced our first order for a FOX wafer level test and burn-in system for gallium nitride (GaN) devices. While silicon carbide will be the semiconductor material of choice for EV traction inverters, GaN is expected to gain significant penetration in the on-board charging market as well as other automotive, solar, and data center power conversion applications. We are working with several of the GaN market leaders, and received a significant number of WaferPak orders throughout the year for gallium nitride reliability test and qualification. We have now received our first forecasts for wafer level production burn-in systems to be delivered during this fiscal year. We continue to be encouraged by this market and believe it will be significant in market size for semiconductors and has the potential to be a solid market opportunity for Aehr’s solutions.
“Within the silicon photonics market, we shipped the first order from a major silicon photonics customer for the new high-power configuration of our FOX-XP system this last fiscal year. This new configuration expands our market opportunity by enabling cost-effective volume production test of wafers of next-generation photonic ICs that are targeted for use in the new optical I/O or co-packaged optics market. Nvidia, AMD, and Intel have all discussed the potential for adding optical chip-to-chip communication for performance improvement and power savings for AI processors and High-Performance Computing chips.
“Looking ahead, we believe Aehr has significant opportunities for growth in fiscal 2025 and beyond with our industry-leading product portfolio, and we look forward to updating you on our progress throughout the year as we seek to capitalize on these exciting new opportunities.”
Fiscal 2025 Financial Guidance:
For the fiscal year ending May 30, 2025, Aehr expects total revenue of at least $70 million and net profit before taxes of at least 10% of revenue.
Original – Aehr Test Systems
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Mouser Electronics, Inc., the authorized global distributor with the newest electronic components and industrial automation products, announced a global distribution agreement with Sanan Semiconductor, a leading manufacturer of silicon carbide (SiC) power products, including industrial and automotive SiC Schottky barrier diodes (SBDs) and SiC MOSFETs. Sanan Semiconductor offers flexible solutions for high-power and high-reliability applications, such as server power supplies, photovoltaic inverters, electric vehicles, and home appliances.
Sanan Semiconductor’s industrial SiC Schottky barrier diodes offer higher efficiency, greater heat dissipation capability, and lower losses than traditional silicon-based solutions. These features enable higher power density and longer-term reliability in system designs.
These devices show no recovery at turn-off and allow a low leakage current with a reverse voltage of up to 1200V. Utilizing an innovative merged PiN Schottky (MPS) structure and substrate thinning technology, these SiC SBDs offer compelling price performance while meeting the industry’s most stringent reliability requirements. Sanan Semiconductor’s SiC SBDs also maintain consistent performance over a broad temperature range, simplifying system design.
Sanan Semiconductor’s automotive SiC Schottky barrier diodes are RoHS-compliant and AEC-Q101 qualified, making them ideal for use in automotive applications. These automotive SiC components offer superior power handling due to their high voltage and current ratings, enabling high frequency and high-temperature operation, which boosts power density, efficiency, and system compactness. These devices offer a greatly reduced capacitive charge (Qc), which minimizes reverse recovery loss and aids in fast switching.
Both grades of SiC SBDs are offered in a diverse range of packaging options to suit every need. From standard Transistor Outline (TO) packages to Surface Mount Device (SMD) solutions and bare die, Sanan Semiconductor’s packaging options are engineered for versatility and performance.
As a global authorised distributor, Mouser offers the world’s widest selection of the newest semiconductors and electronic components — in stock and ready to ship. Mouser’s customers can expect 100% certified, genuine products that are fully traceable from each of its manufacturer partners.
To help speed up the design process for customers, Mouser’s website hosts an extensive library of technical resources, including a Technical Resource Centre, along with product data sheets, supplier-specific reference designs, application notes, technical design information, engineering tools and other helpful information.
Original – Mouser Electronics
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As part of a so-called Joint Lab at Fraunhofer IISB, AIXTRON SE operates equipment, works on process development for SiC epitaxy and runs a demo center for its customers. Joint Labs like this are a great opportunity for companies to collaborate with Fraunhofer IISB in an industry-compatible laboratory environment.
For the epitaxy Joint Lab, the awarded IISB team ensures the continuous fault-free operation of already 5 state-of-the-art G10 SiC reactors, and enables the installation of new systems with minimal downtime. By setting up automated metrology and by optimizing wafer logistics, workflows and data management, the team has also established a modern wafer characterization facility at the IISB with a fast feedback loop for AIXTRON.
Fraunhofer IISB is thrilled for its colleagues Rainer Apelt, Nino Fröbisch and Katharina Roßhirt-Lilla from the SiC Epitaxy Group of the Materials Department together with Christian Heilmann, Rainer Schönweiß and Christopher Torscher from the Infrastructure Group within the Central Services Department. Such outstanding results are the base for the success of the Joint Labs model at Fraunhofer IISB.
Original – Fraunhofer IISB
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Nexperia released 650V ultra- and hyperfast recovery rectifiers in D2PAK Real-2-Pin (R2P) packaging for use in various automotive, industrial and consumer applications including charging adapters, photovoltaic (PV), inverters, servers and switched mode power supplies (SMPS).
Combining planar die technology with a state-of-the-art junction termination (JTE) design, these rectifiers offer high power density, fast switching times with soft recovery and excellent reliability. They are encapsulated in a D2PAK Real-2-Pin Package (SOT8018), which offers the same package outline as the standard D2PAK package but has only two pins instead of three (the middle cathode pin has been removed). This increases the pin-to-pin distance from 1.25mm to over 4mm, which allows to meet the creepage and clearance requirements stated in the IEC 60664 standard.
“These recovery rectifiers further demonstrate Nexperia’s expertise in the field of semiconductor device packaging” according to Frank Matschullat, Head of Product Group Power Bipolar Discretes at Nexperia. “By taking the innovative step of removing the cathode pin from a standard D2PAK package, Nexperia has created a Real-2-Pin package that can meet the creepage and clearance requirements, in particular for high voltage automotive applications.”
Original – Nexperia
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Efficient Power Conversion (EPC) announced that it has moved one step closer to achieving preeminence in the gallium nitride (GaN) power semiconductor industry, as its intellectual property rights to this revolutionary technology were upheld for the third time in three months. The next-generation wide bandgap semiconductors developed by EPC are essential to artificial intelligence (AI), satellites, fast chargers, lidar, humanoid robots and many other transformational technologies.
The U.S. International Trade Commission (ITC) found two of EPC’s key patents valid and one, the Company’s foundational patent, infringed by Innoscience (Zhuhai) Technology Co., Ltd. and its affiliate, Innoscience America, Inc. The ITC’s recommendation comes on the heels of two recent decisions from the China National Intellectual Property Administration (CNIPA), which similarly validated EPC’s counterpart patents in China. The ITC initial determination is a significant milestone in solidifying EPC’s leadership in wide bandgap semiconductors and could lead to a ban later this year on importation of Innoscience’s infringing products into the United States.
“The ITC’s finding that Innoscience uses our patented technology without authorization puts EPC in an enviable position, as U.S. and Chinese regulatory bodies have upheld the validity of our patents,” said Alex Lidow, CEO and Co-Founder of EPC.
“The Commission’s recommendations validate nearly two decades of hard work, resources and R&D that went into developing EPC’s uniquely valuable intellectual property portfolio,” Dr. Lidow added.
Over the last 15 years, EPC has capitalized on its first-mover advantage to develop a broad portfolio of over 200 GaN-related patents and over 150 products, which include its rapidly growing family of integrated circuits, automotive qualified and radiation hardened devices.
Compared with traditional silicon-based power devices, GaN represents a significant leap, with higher efficiency, faster switching speeds, smaller size and lower cost. GaN power devices are integral to self-driving vehicles, medical and communications devices, next-generation rapid chargers, drones, satellites, data centers, e-bikes, solar power systems and humanoid robots, among many other applications. Most notably, EPC’s cutting-edge semiconductors are central to powering the AI revolution by significantly freeing up space for extra computing power while simultaneously reducing energy consumption.
The ITC’s preliminary ruling found both U.S. patents that EPC asserted against Innoscience valid. It also found “infringement [by Innoscience] of U.S. Patent No. 8,350,294,” EPC’s foundational patent used broadly across multiple industries. The second EPC patent, U.S. Patent No. 8,404,508, was found valid, but not infringed by Innoscience. The Commission’s final determination is expected to be issued on November 5, 2024.
Original – Efficient Power Conversion
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The third edition of the second-level master’s program in “Power Electronics Devices and Technologies” organized by the Department of Electrical, Electronic and Information Engineering (DIEEI) of the University of Catania together with STMicroelectronics has been announced.
The goal of the master’s program is to train specialists in technologies based on Wide Band-Gap semiconductors, the new frontier of power electronics that ensures more efficient performance in line with the sustainable development goals defined by Agenda 2030. These technologies are for use in production processes in industries such as automotive, renewable energy, and electrical energy conversion and storage.
“There is a strong market demand for highly specialized professionals trained in the field of power electronics, to meet the needs identified by macro-trends in terms of energy efficiency and the electrification of mobility in the frame of sustainable development,”said Professor Mario Cacciato, coordinator of the master’s program.
“This second-level master’s program offers to master’s graduates in different STEM disciplines opportunities to complete the training and focus it on topics of great interest for research and industry. In addition, the master’s program constitutes a synergistic model for the professional development of young talent from academia together with the industrial world, as effectively demonstrated by the first two editions of the master’s program.”
“STMicroelectronics’ site in Catania is a center of excellence in the European arena for power electronics technologies, thanks in part to the strategic investment in the vertically integrated production of Silicon Carbide devices,” said Gianfranco Di Marco, Power Transistor Sub-Group, Chief of staff and Technical Communication Manager at STMicroelectronics.
“Training specialized profiles and skills in the field of power electronics with multidisciplinary knowledge is essential for fostering technological innovation. This third edition follows the success of the previous ones with theoretical lectures held at University of Catania and internships at ST’s Catania site allowing students to experience working with a leader in power semiconductors. This will forge a close connection between the world of education and the world of work, an essential prerequisite for the sustainable development of the area, and the creation of new career opportunities for students.”
The second-level master’s program offers theoretical and practical training, divided into 7 teaching modules in English. Lectures will be taught by university professors and appropriate specialists from within STMicroelectronics, who will also act as mentors during their internship in the company’s departments and research laboratories. Some lectures, moreover, will be held at ST’s Catania site. Finally, students will participate in seminars held by experts from several major world’s corporations in the industry.
The training course is open to those with a master’s degree obtained in the last five years in:
- Electronic engineering (LM/29);
- Electrical engineering (LM/28);
- Computer and information engineering (LM/32);
- Mechanical engineering (LM/33);
- Chemical engineering (LM22);
- Automation engineering (LM25);
- Telecommunications engineering (LM/27);
- Physics (LM17);
- Materials science and engineering (LM/53);
- Chemical sciences (LM/54);
Proficiency in English is required.
A maximum of 30 participants will be admitted to this master’s degree program. The top 10 in the eligible list will be awarded a scholarship. Those ranking from 11th to 20th will receive a contribution to the tuition fee. Applications must be submitted by September 30, 2024. More information is available here.
The Scientific Committee members are the University of Catania faculty members Mario Cacciato (coordinator), Giuseppe Compagnini, Guglielmo Guido Condorelli, Salvatore Mirabella, Salvatore Pennisi and Antonio Terrasi; and Giuseppe Arena, Michele Calabretta, Gianfranco Di Marco, Vincenzo Randazzo, Mario Saggio, Rosario Scollo, Filippo Scrimizzi and Gabriele Bellocchi of STMicroelectronics.
Original – STMicroelectronics
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LATEST NEWS / PROJECTS / SiC / TOP STORIES / WBGSiCrystal’s SiC Wafers Production Capacity to Triple by 2027 with a New Production Site in Nuremberg
July 4, 2024
2 Min ReadIn an important step towards strengthening the semiconductor industry and promoting sustainable technologies, SiCrystal GmbH will create new, additional production space in the north-east of Nuremberg, directly opposite the existing site. The new building will offer an additional 6,000 square meters of production space and will be equipped with state-of-the-art technology to further optimize the production of silicon carbide wafers.
The close proximity to the existing plant will ensure close integration of the production processes. SiCrystal’s total production capacity, including the existing building, will be approximately three times higher in 2027 than in 2024.
“The new space will significantly increase the production capacity for SiC substrates and we are proud that we were able to welcome Mayor König to the ground-breaking ceremony,” says Dr. Robert Eckstein, CEO of SiCrystal. This underlines the importance of this project for the city and the region.
“This groundbreaking ceremony marks an important milestone for SiCrystal and underlines our commitment to the metropolitan region. In this way, we can continue to supply innovative products of the highest quality for our customers in the future and make a positive contribution to global sustainability. “, said Dr. Erwin Schmitt, COO of SiCrystal. “With the additional production capacities, we will strengthen our market position and make an important contribution to technological development in the semiconductor industry.”
Nuremberg’s Mayor Marcus König congratulates on this event: “SiCrystal is one of the world’s leading manufacturers of silicon carbide semiconductor substrates – among other things, these products are needed for the energy transition. I am delighted that SiCrystal is committing itself to Nuremberg as a location with this massive investment and is thus not only retaining jobs but also creating new ones. Nuremberg is an attractive location.”
The construction work is scheduled to be completed by the beginning of 2026. And will create new jobs in the region. The new building is being realized in cooperation with the general contractor Systeambau from Hilpoltstein.
SiC wafers from SiCrystal, a subsidiary of the Japanese ROHM Group, are of crucial importance for the production of high-performance semiconductor components. By using SiC, we can achieve higher efficiency, lower energy consumption and improved performance in various applications such as electric vehicles, solar energy, and industrial equipment.
SiCrystal is proud to be a fast-growing employer in the metropolitan region and aims to increase employment by more than 100 by the end of the 2027/28 financial year.
Original – SiCrystal
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Forge Nano, Inc., a leading ALD equipment provider and materials science company, further expanded into the semiconductor market with the unveiling of its new Atomic Layer Deposition (ALD) product offering – TEPHRA™ – Forge Nano’s new single-wafer, ALD cluster platform. By offering single-wafer ALD coating quality at throughputs similar to the speed of batch systems, Forge Nano’s TEPHRA ™ will allow customers to produce best-in-class coatings at commercial scale with unrivaled precursor efficiency and speed.
Powered by Forge Nano’s ALDx technology, which offers ultrathin, uniform, pinhole-free films with an unprecedented 10x throughput for single-wafer processing, TEPHRA is dedicated to the manufacturing of specialty semiconductor applications on 200mm wafers and below. With 100x efficient chemical use, rapid cycle times, increased yield, and low-risk manufacturing, TEPHRA is the only single-wafer cluster tool with commercial throughput speeds serving applications in advanced packaging, power semiconductor, radio frequency devices (RFD), microLEDs, microelectromechanical systems (MEMS), and more.
“TEPHRA is designed to unlock new capabilities to meet the growing demand of novel More-than-Moore market device applications that seek high-throughput ALD capabilities without sacrificing film qualities. Forge Nano will enable advanced device architectures with groundbreaking efficiency in the semiconductor space with our innovative ALD wafer tools that prioritize cost, performance and efficiency,” said Paul Lichty, CEO of Forge Nano. “With TEPHRA, Forge Nano is opening new coating solutions and opportunities for our proprietary coating techniques that address high aspect ratio structures, which have previously been underserved in the semiconductor industry.”
Forge Nano’s ALDx technology enables conformal coatings to scale to aspect ratios greater than 10:1. With a flagship all-ALD Metal Barrier Seed film application, TEPHRA offers nitride and metal depositions in high aspect ratio structures for advanced 3D integration applications, including through silicon and through glass vias. By moving beyond 10:1 aspect ratios, manufacturers can scale their packaging processes and reduce power consumption by overcoming common pitfalls of directional deposition technologies, including PEALD, which struggle with conformality and void formation.
TEPHRA is available in a range of configurations with the option for four-sided, six-sided and eight-sided cluster platforms. TEPHRA can process wafers up to 200 mm between 80 and 300°C with six process precursor channels and dedicated chambers for oxide, nitride and metal depositions. TEPHRA ™ also features Forge Nano’s patented CRISP technology, a suite of catalyzed thermal ALD processes that enable low temperature and hard-to-deposit materials without the need for plasma.
For more information on Forge Nano’s TEPHRA ™ product, visit the TEPHRA product page at: https://www.forgenano.com/products/tephra. SEMICON West 2024 attendees can stop by the Forge Nano booth (#133), located in the south exhibition hall, for additional product information and to discuss capabilities with our product specialists.
Original – Forge Nano
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GlobalFoundries announced that it has acquired Tagore Technology’s proprietary and production proven Power Gallium Nitride (GaN) IP portfolio, a high-power density solution designed to push the boundaries of efficiency and performance in a wide range of power applications in automotive, internet of things (IoT) and artificial intelligence (AI) datacenter. As the digital world continues to evolve with technologies like Generative AI, GaN stands out as a pivotal solution for sustainable and efficient power management particularly in datacenters.
Today’s announcement reinforces GF’s commitment to large-scale manufacturing of GaN technology that offers a suite of benefits to help datacenters meet the increasing power demands while maintaining or improving power efficiency, reducing costs and managing heat generation. The acquisition expands GF’s power IP portfolio and broadens access to market leading GaN IP that will enable GF customers to quickly bring differentiated products to market. As a part of the acquisition, a team of experienced engineers from Tagore, dedicated to the development of GaN technology, will be joining GF.
“We are committed to being the foundation of our customers’ power applications today and for decades to come,” said Niels Anderskouv, chief business officer at GF. “With this acquisition, GF takes another step toward accelerating the availability of GaN and empowering our customers to build the next generation of power management solutions that will reshape the future of mobility, connectivity and intelligence.”
“The accelerating demand for more power efficient semiconductors is dramatically increasing, and Tagore has been at the forefront of developing disruptive solutions using GaN technology for a wide range of power devices,” said Amitava Das, co-founder and chief operating officer of Tagore Technology. “The team and I are excited to join GlobalFoundries to increase our focus on market-leading IP that will help address power design challenges and support the continued evolution of automotive, industrial and AI datacenter power delivery systems.”
In February 2024, GF was awarded $1.5 billion in direct funding under the U.S. CHIPS and Science Act, part of that investment is targeted towards enabling the high-volume manufacturing of critical technologies including GaN to securely produce more essential chips.
Combining this manufacturing capacity with the technical know-how of the Tagore team, GF is set to transform AI system efficiency, especially in edge or IoT devices, where reduced power consumption is critical.
“GlobalFoundries is at the forefront of technological advancements. With Tagore Technology joining the GF India team, we will further enhance our tech capabilities, particularly in emerging areas like GaN,” said Jitendra Chaddah, vice president and India country head at GF. “I welcome the Tagore team to GF, and I am excited about the work we will do as we continue to grow and strengthen our engineering capabilities together.”
Original – GlobalFoundries
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SMC Diode Solutions, an American-led semiconductor design and manufacturing company, celebrated the opening of its second power discrete fab in Nanjing, China. The new facility realized volume production only 21 months after groundbreaking in September of 2022, and will begin shipments to customers in Q4 2024 for high power and high voltage rectifiers and MOSFET 6-inch and 8-inch wafers.
This new fab marks a milestone in SMC’s growth as they further invest in the China market and the growing renewable energy sector. The new 300,000 square foot facility is set to produce 1.2 million silicon wafers and 60,000 silicon carbide wafers per year, increasing SMC’s total production by over four times. SMC’s current fab in Lukou, Nanjing currently produces 300,000 silicon wafers per year. The $3 billion RMB investment in the new fab will allow SMC to handle the end-to-end production of silicon carbide products for the first time and has created three hundred new jobs.
“As the world moves towards using more and more renewable energy, we are thrilled to now be able to participate in the sector and be part of the solution to increase green energy usage and protect our Earth. We are very excited to have our new fab up and running and we look forward to servicing our customers’ needs better with the increased capacity.” – Dr. Yunji Corcoran, SMC chairwoman and chief executive officer.
As Nanjing is also home to SMC’s current fab, the city was an advantageous choice for the new fab location. With their experienced management team, starting up the new fab was a seamless process, allowing production to begin not long after breaking ground. The city is also home to abundant resources and engineering talent, making it an ideal place for SMC to grow and expand.
Power Semiconductors Weekly team had pleasure to interview Dr. Yunji Corcoran on this occasion:
- The company history dates back to 1997. Can you tell us about some of the major milestones and your semiconductor journey so far?
Certainly. In the early stages of our company, from 1997 until about 2014, we focused on the US and South Korean markets. We were growing steadily, but remained focused on the quality of our products. From 2014 to 2019, we began to focus on active growth, but I consider this more of a preparation stage for our company’s expansion. We investigated ways to create better products and put more of our R&D efforts into new silicon and Silicon Carbide (SiC) products. We also began strengthening our salesforce globally. From 2019 on, we started shipping our new products, both silicon and SiC. Now, we have reached our most significant milestone to date: opening our second fab and quadrupling our production capabilities. We are beginning a new phase that will focus on growing our presence in the power semiconductor market.
- Today we see many semiconductor companies investing a lot of energy into the automotive, renewables, and AI applications. With a wide product line and a new wafer fab to support further expansion, what are your major areas of interest and how do you see them evolve in the coming years?
Automotive, renewables, and AI are extremely relevant markets for both our company and the overall semiconductor industry right now. AI requires a lot of power supply, so we plan to grow our power supply products in that area alongside our existing customers. Automotive and renewables are newer segments for us and the semiconductor market, but ones with incredibly high demand right now. The market is growing rapidly, so we are growing with aims to successfully compete in those areas as well.
Our plan is to focus on our growth within the power supply market and naturally expand into the sustainable energy market. As the world continues to prioritize clean energy, the demand for EV and renewable energy products will also grow. Since SiC products in particular meet the specific power needs of those applications, a rise in the use of SiC products seems likely. I suspect the semiconductor industry will play a crucial role in providing more clean energy globally, which we are excited to be a part of.
- With the new fab you plan to address both silicon and silicon carbide markets? What is your view on the growing demand for SiC and how SMC Diode Solutions plan to correspond to it?
Yes, our new fab will produce both silicon and SiC products. Our current fab produces approximately 300,000 silicon wafers per year, but our new fab has the capability to produce a total of 1,260,000 wafers per year – 1,200,000 silicon and 60,000 SiC. We are very much focused on our silicon power products and view our SiC line as a natural extension of that.
The growing demand for SiC products makes perfect sense. SiC is a material with remarkable properties. It is considered a “wide bandgap” material, which means that it requires more energy to excite electrons from the valence band to the conduction band compared to standard silicon semiconductors. As a result, it offers superior performance characteristics including higher reverse voltage capabilities and greater stability at high temperatures.
Overall, SiC-based products offer improved efficiency and reliability compared to traditional silicon counterparts. For a lot of newer applications, particularly in the sustainable energy sector, these capabilities have become more and more necessary. We see our new fab opening as a natural response to this demand, ande are increasing our capabilities to grow alongside the market.
- Today you have four major locations in China, South Korea, Germany and the USA. Do you plan to expand your network further?
Yes, definitely. We consider SMC to be a global company, and have a range of operations throughout the world, including our headquarters in China and other offices in the US, Germany, South Korea, the UK, and India. As we grow and gain customers throughout the world, we will continue to establish more locations, whether they are R&D, manufacturing, packaging, or sales offices.
- Speaking of the network and future growth opportunities. Both of your fabs are located in Nanjing. With many companies in the US already taking advantage of the CHIPS and Science Act, do SMC Diode Solutions have any considerations to join the rest and use this chance to strengthen the US presence?
It is exciting that governments are recognizing the importance of semiconductors through initiatives like the CHIPS and Science Act, and I think this will really bolster the industry as a whole. Right now, we’re focused on our manufacturing efforts in Asia, but are open to the possibility as we continue to grow.
- With the rise of the Chinese semiconductor industry and a very competitive landscape, how do you position your company and differentiate from the growing number of new entrants?
The key thing is our products. Our products stand out for their high quality and outstanding performance. Our team’s commitment to customer service really sets us apart as well.
Our company also approaches the semiconductor market from a unique perspective. As a business with global locations and leadership, we deeply understand the needs of the international market. We prioritize high quality standards that the international market demands while benefiting from relatively low overall production costs, creating an ideal product for our customers.
- We see many companies in China, Europe, the US, shifting to the vertical structure and full integration of all processes – from growing the semiconductor boules to the packaging of the final product. What are your thoughts on such an approach and do you see it applicable for your company in the future as well?
I’ve also noticed this trend in the industry. While I can see the benefits of this approach for some, I would not anticipate applying it within SMC. I believe in focusing our efforts on what we’re able to do best. We have specialized in design and manufacturing for over 25 years and plan to continue that.
We do have an existing silicon module line, so we are considering expanding into SiC modules in the future. However, for our company we believe it’s best to stay focused on the functions we currently have and prioritize delivering the highest quality product.
- And lastly, after the announcement of a new fab opening, many of your partners would be willing to engage in discussions to find out more. What trade shows or conferences in the second half of 2024 can they meet the company at?
We would love to engage in those discussions as well. You can find us with our own booth at Electronica 2024 this September in Munich, Germany and the Anaheim Electronics & Manufacturing Show (AEMS 2024) in Anaheim, California this October. We will also be attending ISCRM 2024 in Raleigh, North Carolina this fall.
More often than not, you will find someone from our company at any major semiconductor event. Feel free to contact us at sales@smc-diodes.com for any questions or check our website updates to see where you can find us next.
Original – SMC Diode Solutions
