New set of rules in IGBT market

The insulated-gate bipolar transistor (IGBT) is a three-terminal power semiconductor device. The main trends impacting IGBT include the power stack trend, revolution of Chinese IGBT, growth of IGBT use in consumer applications, and competition from SiC and GaN based devices.

According to Alexander Avron, Yole Developpement, current density of the IGBT has been multiplied by 3.5 in 20 years. IGBT technology is now very mature, using trenches and thin wafer. Wafer size for IGBT production is still growing and Infineon is currently the leader.

Infineon expects a cost advantage of 20-30 percent by increasing the wafer size from 8- to 12-inches. For Infineon, the 12-inch production line is for MOSFETSs, and they will probably produce IGBT 600V on thin wafer. Fairchild and IR prefer to remain at 8-inch.

Technology roadmap
A new generation release is always a low voltage product (600-900V). Main improvements have been in losses reduction. In the IGBT supply chain, vertically integrated companies are Japanese only, besides a few, like ABB. Only a few companies, like Danfoss, take advantage of  doing module and inverter for motor drives. In a cost-driven market, there is not much competitive advantage in developing own module.

Trends impacting IGBT
The power stack trend - The need for more modularity and higher performance made components makers (active and passive) to join and create consortiums or JVs. It is trending toward more integration.

Revolution of the Chinese IGBT - First Chinese companies are starting to manufacture IGBTs using standard technology and low cost, perfect for a local market. Asian players are becoming a greater part of the IGBT market. While they do not make a lot of devices as yet, it is expected that they will quickly gain market shares in low cost local businesses.

Some new entrants include CSMC, Hua-Hong NEC, PSMC, BYD, Grace Semiconductor, Alpha & Omega Semiconductor, etc. Many Chinese companies are very close to or already able to manufacture their own IGBTs. This will grow and create a Chinese IGBT.

Growth of IGBT use in consumer applications - IGBTs are becoming more part of the consumer lifestyle. Renewable energies and EV/HEV are good examples. Pioneers of HV IGBT have the best market shares. Margin for HV IGBT modules is high. It is first in the EV/HEV and renewables markets. New markets are targeted by all players.

The ASP evolution of consumer markets has dropped down very fast as compared to the industrial markets. Also, DLB or direct lead bonding is a specific technology from Mitsubishi Electric to produce epoxy molded power modules for hybrid and electric cars. Mass production is targeted for 2013.

Competition from SiC and GaN - Next generation devices are becoming available. They will displace IGBT, but not at all the levels and in all the applications. Characteristics of GaN-based inverters are: they primarily target medium voltage apps (200-600V range). SiC diodes are already in production, mainly coupled with IGBT. Penetration of SiCs in wind turbines will happen later than expected.

As for the 2006-2020 power devices market forecast, Yole expects a more stable growth by 2020. There was an unanticipated slowdown in 2012. The market share in 2011 was Mitsubishi 27 percent, Infineon 23 percent, Fuji Electric 11 percent, etc. The IGBT market share was Infineon 35 percent, Mitsubishi 32 percent, Hitachi 12 percent, ABB 9 percent, respectively.

Yole estimates that at least 15 companies - foundries, fab lights and fabs -- are working on IGBT development in China.