II-VI Closes $100M SiC Substrates Contract
Contract to supply Dongguan Tianyu Semiconductor with 150 mm SiC substrates begins this quarter
II-VI has closed an over $100 million contract to supply Dongguan Tianyu Semiconductor Technology with SiC substrates to be delivered beginning this quarter. Tianyu, one of China's first and largest SiC epitaxial wafer manufacturers, has signed a long-term supply contract, with upfront payments, to secure 150 mm 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 150 mm SiC substrates for power electronics,” said 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 50,000 sq. ft. of new cleanroom space, at II-VI's Asia Regional Headquarters in Fuzhou, China. Tianyu will benefit from II-VI's 150 mm SiC global production capacity in both the US and in China.
Tianyu and II-VI aim to provide a high-quality and reliable supply chain and future 200 mm capability that will be critical to support the rapidly growing demand for SiC power electronics in electric vehicles (EVs), renewable energy, smart grids, microgrids, and power supplies for data networks.