18 August 2022
II-VI closes $100m contract to supply Tianyu with 150mm SiC substrates for power electronics
Engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has closed a contract worth over $100m to supply 150mm silicon carbide (SiC) substrates to China’s Dongguan Tianyu Semiconductor Technology Co Ltd (which specializes in the R&D, design and manufacturing of SiC epitaxial wafers), to be delivered beginning this quarter and through the end of 2023.
Tianyu, one of China’s first and largest SiC epiwafer makers, has signed a long-term supply contract with II-VI, with upfront payments, to secure 150mm SiC substrate capacity that will meet its demand through calendar year 2023.
“In November 2021, we were pleased to announce that Tianyu had selected II-VI as its primary strategic partner for the supply of 150mm SiC substrates for power electronics,” notes Sohail Khan, executive VP, New Ventures & Wide-Bandgap Electronics Technologies business unit. “With the end-demand ramping up significantly, it became essential for Tianyu to secure its supply with this long-term, high-volume contract, which will be recurring and grow in value over time.”
To meet the market demand in Asia, II-VI established in 2021 a backend processing line for SiC substrates, in over 50,000ft2 of new cleanroom space, at II-VI’s Asia Regional Headquarters in Fuzhou, China. Tianyu will benefit from II-VI’s 150mm SiC global production capacity in both the USA and in China.
Tianyu and II-VI intend to provide the high-quality and reliable supply chain and future 200mm capability that will be critical to support the rapidly growing demand for SiC power electronics in the megamarkets of electric vehicles (EVs), renewable energy, smart grids, micro-grids, and power supplies for data networks. Tianyu is reckoned to be well positioned to serve the power electronics market for EVs in China (by far the world’s largest).
Given their broad range of applications, power electronics based on SiC have a highly beneficial impact on the environment through enabling significant reductions in carbon dioxide emissions and energy consumption.