Global Updates on Power Semiconductor Factories: Key Developments from Thailand, India, and Japan

Recent updates from three major power semiconductor factories across the globe have captured industry attention. These include Infineon’s new backend factory in Thailand, a $1.6 billion SiC wafer plant investment in India by Indichip and YMTL, and mass production of 6-inch SiC power semiconductors in Japan by Fuji Electric. These developments highlight the rapid growth and strategic importance of the global power semiconductor industry.

1. Thailand: Infineon Begins Construction of Backend Semiconductor Factory

On January 14, 2025, Infineon broke ground on a new backend semiconductor factory in Samut Prakan, south of Bangkok. This facility will diversify Infineon’s manufacturing footprint and is set to meet the growing demand for power modules in industrial and renewable energy applications.

The first building is expected to commence operations in early 2026, with production ramping up according to market demand. This project is supported by the Thailand Board of Investment (BOI).

Infineon aims to foster a robust semiconductor ecosystem in Southeast Asia by partnering with local suppliers and institutions. Additionally, the factory is designed with sustainability in mind, featuring solar power modules and renewable energy systems to align with Infineon’s commitment to achieving carbon neutrality by 2030.

2. India: $1.6 Billion Investment in SiC Wafer Factory

India-based power semiconductor startup Indichip Semiconductors Ltd., in partnership with Japan’s Yitoa Micro Technology (YMTL), announced a $1.6 billion investment to establish a silicon carbide (SiC) wafer manufacturing facility in Andhra Pradesh.

The facility, located in Orvakal Industrial Park, will initially produce 10,000 SiC wafers per month, with plans to expand to 50,000 wafers per month within three years. It will begin with 6-inch wafers, transitioning to 8-inch wafers as production scales.

This investment addresses the rapidly growing demand for SiC power semiconductors in electric vehicles (EVs), renewable energy, and industrial applications. Andhra Pradesh will provide land and infrastructure to support the project, strengthening India’s position in the global semiconductor supply chain.

3. Japan: Fuji Electric Begins 6-Inch SiC Mass Production

In December 2024, Fuji Electric officially began mass production of 6-inch SiC power semiconductors at its manufacturing base in Aomori Prefecture.

Initially delayed due to fluctuations in global EV demand, the facility is now operational under Fuji Electric’s subsidiary, Fuji Electric Tsugaru Semiconductor. The company plans to increase production capacity ninefold by 2026 to meet growing market demands.

Fuji Electric is also investing heavily in its Matsumoto plant, where it plans to establish an 8-inch SiC wafer production line by 2027. The company’s comprehensive strategy includes significant investments to solidify its market position in the SiC power semiconductor sector.

The Rise of SiC Power Semiconductors

Silicon carbide (SiC) is a cutting-edge semiconductor material with unique properties, such as high thermal conductivity, high breakdown voltage, and excellent radiation resistance. It is increasingly favored for high-power, high-temperature, and high-frequency applications.

Current Industry Trends:

Adoption of 6-inch SiC wafers: These remain the industry standard, with large-scale production already underway.

8-inch SiC wafers: While still in the early stages of development, these are expected to gain momentum, with a projected market share of 20% by 2027.

Key applications: EVs dominate SiC usage (38% share), followed by consumer electronics (22%) and solar inverters (15%).

Market Growth Projections:

Global SiC Power Device Market: Expected to reach $9.17 billion by 2028, driven by advancements in EVs, renewable energy, and industrial automation.

Challenges: Hybrid bonding and wafer-to-wafer stacking techniques face yield and cost hurdles, but they are crucial for scaling SiC adoption in high-demand markets.