[News] ROHM’s First SiC Substrate Production in Japan, 8-Inch Substrates Set for 2024

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During an earnings call in November 2023, Isao Matsumoto, President of ROHM Semiconductor, disclosed the company’s plans to the production of 8-inch SiC substrates at its second plant in Miyazaki, Japan, starting in 2024. This is the first time ROHM will produce SiC substrates in Japan.

Notably, the Miyazaki Plant No.2 Project is part of ROHM’s ongoing capacity expansion strategy. The company intends to invest between 170 and 220 billion yen in its SiC business from 2021 to 2025.

For SiC power semiconductor manufacturers like ROHM, it’s imperative to bolster their SiC substrate production capacity. This is driven by two key factors. Firstly, there has been a shortage of substrate materials, which has posed a challenge for the SiC power semiconductor industry. Secondly, the growing wave of electric vehicles has led to an increased demand for SiC power semiconductors.

To thrive in the SiC power semiconductor industry and capture a big market share, major companies are actively investing in expanding their production capacity. They often choose to form supply agreements with suppliers, set up their own production lines, or acquire related businesses.

ROHM previously established a pioneering position in the industry by producing SiC substrates at its plant in Nuremberg, Germany, following the acquisition of SiCrystal, a German SiC substrate manufacturer.

The Miyazaki plant no.2, scheduled to start production in 2024, was originally the Kunitomi plant of Solar Frontier, a subsidiary of Idemitsu Kosan. In July of this year, ROHM announced its acquisition of the assets of Solar Frontier’s former Kunitomi plant, a deal that concluded in October. It’s worth noting that this plant will become ROHM’s largest SiC power semiconductor production hub in Japan.

While pursuing acquisitions, ROHM is also actively expanding its in-house production capacity. According to information on ROHM’s official website, the company currently operates four SiC power semiconductor production plants in Japan, located at its Kyoto headquarters, Chikugo Plant in Fukuoka, Nagahama Plant in Fukuoka, and Miyazaki plant no.1.

Both acquisitions and in-house production strategies help ensure a reliable product supply. However, in the dynamic SiC industry, forward-thinking leaders are eager to secure additional production capacity in advance. Collaboration with established manufacturers is a common approach, and ROHM is no exception.

In June of this year, ROHM signed a long-term supply partnership agreement for SiC power devices with Vitesco. According to this agreement, the combined transactions between the two companies from 2024 to 2030 will exceed 130 billion yen.
(Image: ROHM)