1. Markets for Silicon Carbide Devices Olivier Nowak, WTC – Wicht Technologie Consulting, Munich EPE 2005 September 12, 2005

2. September 12, 2005 www.wtc-consult.de 2 Agenda 1Context 2Markets 3 Drivers and Challenges 4 Conclusion

3. September 12, 2005 www.wtc-consult.de 3 WTC – Wicht Technologie Consulting Consulting company specialising in marketing of MEMS and microelectronics Founded in 2000 Located in Munich Business – Market analysis – Business development – Strategy planning – Setup of EU projects 8 consultants Some customers – Infineon – Matsushita – Süss MicroTec – EVG – CEA LETI – ARC Seibersdorf Studies – NEXUS MST market analysis – RF MEMS – SiC

4. September 12, 2005 www.wtc-consult.de 4 Position of SiC on the hype curve Technology trigger Peak of inflated expectations Trough of disillusionment Slope of enlightenment Plateau of productivity Visibility Time today 2009 Thanks to the Gartner Group for formalising the hype curve Ca. 1997 First SiC wafers SiC diodes ramping up, transistors starting

5. September 12, 2005 www.wtc-consult.de 5 Industry players for SiC devices Wide bandgap specialists – e.g. Cree, Intrinsic, Semisouth, SiCED Semiconductor companies – e.g. Infineon, Toshiba, Hitachi, STMicroelectronics, Fairchild, Rohm Suppliers of aerospace/defense industry – e.g. Dynex, International Rectifiers, Microsemi, Kulite System companies – e.g. General Electric, Rockwell Scientific, Areva, Siemens Car makers/suppliers – e.g. Toyota/Nippondenso, Nissan and suppliers of SiC wafers

6. September 12, 2005 www.wtc-consult.de 6 SiC Products and R&D JFET/SIT emerging Northrop Semisouth Cree Infineon/SiCED Hitachi Intrinsic Toshiba Rockwell, … MESFET $3m already Cree New Japan Radio MOSFET Before 2009 Cree Fairchild Mitsubishi Nippondenso Philips Rohm … Thyristors Cree GE Schottky diodes $10m already Cree Infineon/SiCED Dynex EcoTron GE Mitsubishi Rohm Semisouth Int. Rectifier Rockwell STMicroelectronics … PiN diodes Soon (< 2 years) Cree GE Rockwell … BJT SiC devices

7. September 12, 2005 www.wtc-consult.de 7 Market for SiC devices 2004: $13m 2009: $53m Annual growth rate ~25% ¾ diodes, ¼ transistors Main applications – Power supplies – Power amplifiers – Motor drives (in 2009) Negligible contributions from non- power devices 2004–2009 market for SiC devices

8. September 12, 2005 www.wtc-consult.de 8 Non-power SiC devices Gas sensors – Research by AppliedSensor (S) for automotive exhaust gas – Availability >> 5 years UV sensors (market < $500K) – Two devices (sglux, IFW) available, based on Cree chips – Small area limits applications Pressure sensors – On-demand production by Kulite – R&D by FLX Micro, STMicroelectronics Radiation sensors – Prototype by Westinghouse (Siemens) Gas sensor from Boston Microelectronics UV sensor from IFW Pressure sensor from Kulite

9. September 12, 2005 www.wtc-consult.de 9 Drivers for SiC Markets Smaller power supplies – Increased reliability a bonus – Ever hungrier microprocessors Energy-efficient motor drives – SiC diodes a first step, combination SiC diode+SiC transistor is target – Smaller size a bonus – Industry and household (air conditioner) applications High (ambient) temperature operation not a major driver – SOI is enough for automotive (at least for now) – Aerospace up to 300°C also with SOI – Niche markets above >400°C require packaging

10. September 12, 2005 www.wtc-consult.de 10 Market challenges SituationPrognosis In practice only one source of wafers… …which also happens to commercialise devices Getting better after 2007 Price too high Still several times that of comparably rated Si devices Slow improvement Using SiC needs redesignNo way around SOI entrenched As long as price issue remains Patent lock stifling market Diodes especially Repeat

11. September 12, 2005 www.wtc-consult.de 11 Applications fields and preferred active materials Power (non-RF): – Low power: Si – High power, mass markets: SOI – High value, high reliability (IT, medical): SiC High temperature – <200°C: SOI – 200-400°C: undecided (active-cooled SOI or SiC) – > 400°C: SiC, when R&D is over RF power: undecided (GaN? SiC? LDMOS? GaAs?)

12. September 12, 2005 www.wtc-consult.de 12 Conclusion ~$13m SiC device market in 2004 – ~75% Schottky diodes – Expected to grow to >$50m in 2009 Technical challenges are receding, but economic challenges remain – Scarcity of wafer sources – Cost of redesign Role casting of materials is emerging – SiC for niche power – GaN for RF power (t.b.c.) – SOI for power and high temperature Most common application of SiC as a semiconductor material is as a substrate for GaN (uses >90% of wafer production) – Today LEDs and LD, possibly HEMT tomorrow

13. September 12, 2005 www.wtc-consult.de 13 Silicon Carbide Electronics Markets 2004–2009 Available now from WTC 220 pages 35 company profiles €3000 Contact: Olivier Nowak olivier.nowak@wtc-consult.de