REUTLINGEN, Germany — Suppliers worldwide are investing heavily in silicon carbide microchips to help automakers hit their ambitious electric vehicle targets, spending billions of dollars to secure a stock of them or even make their own.
"I started in the semiconductor business when [micro-electromechanical systems] were booming," said Patrick Leinenbach, Bosch senior vice president of semiconductor operations, on a tour of the Reutlingen facility."It took more than 20 years to see a boom like that again, but that's what we're seeing with silicon carbide."
The material is not new, but it has come into focus for the auto industry over the past several years as manufacturers look for ways to make EVs more efficient and reduce charging times, alleviating two major concerns for many potential EV buyers. It's a view echoed by executives at many of Bosch's competitors, as well as those leading major semiconductor makers worldwide.
It's not the only major supplier to invest in Wolfspeed. German supplier ZF Group and Wolfspeed intend to partner on a $3 billion facility in Germany that the companies say will be the world's largest producer of silicon carbide chips. Demand is far outpacing supply for the material. Wolfspeed's crystal growth operation, which the company said is the largest silicon carbide facility in the world, cannot make"enough to support the massive accelerating demand" for the material, Lowe said.In July, Magna International signed a long-term supply agreement for silicon carbide chips with semiconductor maker Onsemi, of Phoenix.