Cree's SiC wafer supply

The use of SiC devices seems to be just a small beginning. From the upstream industry chain, it is very interesting to start to expand the scale and lock up the supply.

In January 2019, Cree and ST signed a multi-year, $ 250 million supply agreement. Wolfspeed will supply ST with 150㎜ SiC Wafer.

In October 2018, Cree announced another $ 85 million long-term agreement to produce and supply SiC wafers for an unnamed "leading power equipment company."

In February 2018, Cree and Infineon signed a $ 100 million long-term supply agreement to provide SiC wafers for products such as photovoltaic inverters, robotics, charging infrastructure, industrial power, traction and variable speed drives.

This opened a new track, making the transition to power electronics for electric vehicles faster.

Judging from this situation, several major SiC devices, especially for high-end luxury pure electric vehicles, will slowly expand in the next 2019-2020. The possible order is divided into:

1) Use of Tesla's Model 3 and subsequent models

2) Use of Porsche and German luxury car companies

3) Application of high-end models of car companies in other regions

4) High-end models of domestic independent brands

The number of model 3 in 2018 is based on a production volume of more than 100,000. This data is to a certain extent rapidly stimulating the SiC MOSFET market, and the next high-end models with ultra-fast charging capabilities will soon be delivered (Taycan). Tesla's rapid introduction suddenly stimulated competition and drove the entire automotive SiC MOSFET industry chain.

From the perspective of infrastructure, there is a linkage effect. The demand for high-voltage vehicle charging drives the demand for high-voltage charging piles.

Note: Whether the next-generation Tesla's fast charging network will turn to high voltage in a timely manner depends on the time point

Dismantling the needs inside, from inverters, chargers to accessories such as PTC, compressors and other series of conversion.

The gradual high voltage from the DC charging pile, including the demand brought by miniaturization and high power, can also support the use of this piece. In this context, whether the upstream SiC supply chain is ready to meet the rapid start-up or even acceleration of the market. Since the end of 2016, there has been a shortage of SiC wafer supply. From this perspective, evaluating the introduction of future technologies has not only looked at the competition game in a small market segment.

Summary: The preparation actions of the upstream can be reflected at different levels. It is judged that the high-pressure promotion in recent years will be slightly faster than we think.