News
Xiaomi’s subsidiary, Shanghai Xiaomi Jingming Technology Co., Ltd., was established recently with a registered capital of 10 million yuan (RMB). The company’s scope of operations includes car sales, car wash services, vehicle repair and maintenance, small and micro passenger car rental services, chauffeur services, and internet sales.
The establishment of this new company is closely tied to Xiaomi’s foray into the electric vehicle (EV) industry.
On March 30, 2021, during a Xiaomi product launch event, the company’s founder, Lei Jun, announced Xiaomi’s entry into the smart electric vehicle sector. Following this announcement, Xiaomi formally approved the EV project and committed to setting up a wholly-owned subsidiary to oversee its EV business. Xiaomi allocated an initial investment of 10 billion RMB for this venture, with a projected investment of 10 billion USD over the next decade.
In a recent development, Xiaomi’s Chairman, Lei Jun, expressed his optimism about Xiaomi’s electric vehicle project on October 25, stating that the project is progressing smoothly.
Sources familiar with the matter disclosed that Xiaomi’s electric vehicle project has multiple platform generations in development, with the first platform set for release in 2024 and the second in 2025.
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(Photo credit: Xiaomi’s Facebook)
News
After a grueling six-week standoff, the United Auto Workers (UAW) has reached a groundbreaking labor agreement with General Motors (GM). This news comes after resolving disputes with Ford and Stellantis, the parent company of Chrysler, signaling a turning point in the largest auto industry strike in recent history.
According to reports from Reuters and The Wall Street Journal, the UAW and General Motors reached a preliminary agreement on October 30, officially putting an end to the six-week-long strike. It is reported that the UAW has successfully secured wage increases from General Motors similar to those obtained from Ford and Stellantis.
Over a four-year period, the average wage increase reaches 25%, and retirement benefits receive additional enhancements. When including other allowances, the maximum wage increase reaches 33%. The details are subject to approval by union members’ vote.
In response to the agreement, GM’s CEO, Barbara, stated that the new terms would enable the company to continue investing while offering well-compensated employment. She eagerly anticipates the return of all employees to their workstations.
The UAW initiated localized strikes against the three automotive giants – GM, Ford, and Stellantis – starting on September 15. These strikes grew in scale over time, primarily targeting larger and more profitable factories to exert pressure on the management. At Its Peak, Nearly 50,000 People Joined the Strike, with President Biden Personally Expressing Support by Visiting the Strike Sites.
The lengthy strike has finally concluded, bringing a sigh of relief to automakers. However, it has had a significant financial impact, with both General Motors and Ford canceling their annual earnings forecasts. General Motors estimates the strike resulted in approximately $200 million in losses each week.
Analysts anticipate that the new labor agreement will substantially increase production costs for the big three automakers, potentially undermining their competitiveness against union-free electric vehicle manufacturers like Tesla and foreign brands such as Toyota.
Notably, the union has secured greater influence over capital decisions during negotiations, including the power to initiate strikes when a manufacturer contemplates plant closures.
While the three major automakers currently express their intent to keep existing factories operational during their transition towards electric vehicles, contractual constraints may force them to continue running unprofitable facilities in times of economic downturn or declining sales.
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(Photo credit: GM’s facebook)
News
Once considered a driving force behind economic growth, the electric vehicle (EV) market is facing a reality check as consumers are becoming more practical about their needs due to rising inflation and high-interest rates. Automakers acknowledge that in times of inflation, electric vehicles won’t be on consumers’ radar in the coming years unless their prices are lowered.
In the third quarter, the U.S. saw a surge in EV sales, breaking the 313,000 mark, almost a 50% increase from the same period the previous year. The EV market share reached an all-time high of 7.9%.
However, this growth may be reaching its peak as major automakers are now either postponing their electric vehicle sales targets and production plans or resorting to price reductions.
For instance, Ford has extended the annual production target for electric vehicles to 600,000 units by one year, abandoned the goal of producing 2 million electric vehicles by 2026, and temporarily halted a $12 billion investment in EV projects.
General Motors has also abandoned its sales targets, and Honda has given up on its plans to jointly develop electric vehicles priced below $30,000 with General Motors. Tesla has postponed its super factory project in Mexico.
More manufacturers are resorting to price reductions, including Mercedes-Benz, Tesla, and Ford’s electric trucks, all of which are offering significant discounts.
Price vs. Affordability
Consumers are primarily concerned with the price difference between EVs and gasoline vehicles. In the U.S., most compact electric SUVs are priced at around $52,000, while similar gasoline SUVs cost only about $34,000.
According to Ford’s CEO, in the EV industry, exceptional products alone are no longer sufficient; they must also be cost-competitive. Elon Musk also noted that the high-interest-rate environment is unfavorable for market demand, and making products more affordable is essential to encourage people to make purchases.
However, even with price reductions and discounts, it seems that buyers remain unimpressed. U.S. dealers have observed that the next wave of buyers, unlike those who made impulsive purchases in the past couple of years, are now more focused on practical factors such as cost, infrastructure challenges, and lifestyle impediments.
Dealers are increasingly realizing that electric vehicles are a tougher sell when compared to traditional gasoline-powered cars.
Practical Considerations
Market analysts suggest that over the past decade of low-interest rates, consumers have increased their spending. However, as interest rates rise, consumers now find the need to be more frugal.
The price of EVs has gone beyond the affordability range of many consumers. The current high-interest-rate environment is also unfavorable for convincing consumers to explore immature automotive technologies.
A survey found that aside from price, consumers still worry about range anxiety and the lack of charging infrastructure. Up to 77% of respondents said these were the most pressing issues when considering EVs. Consumers are less likely to consider immature products when their budgets are tight.
The U.S. government aims to have half of all new vehicles sold be zero-emission vehicles by 2030. Just a few years ago, policymakers believed that Americans would adopt EVs without needing much persuasion. However, this optimism now appears to be overly idealistic.
For now, General Motors, Ford, and even Tesla are deciding to hold onto their cash reserves and redeploy them when the economic situation stabilizes. Toyota Chairman Akio Toyoda, who has consistently argued that pure EVs are not the only solution, should be feeling vindicated as he stated at the recent Tokyo Motor Show, saying that “People are finally seeing reality.”
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(Photo credit: Pixabay)
In-Depth Analyses
Escalating demand in sectors like electric vehicles, 5G communications, photovoltaics, and memory storage is currently fueling the rapid growth of the silicon carbide (SiC) industry. Key players in China are intensifying their research and development efforts to overcome technological challenges and secure a substantial market share.
The arrival of 8-inch SiC substrates is crucial and marks a technological significant milestone that everyone desires, opening up new possibilities.
The Turning Point: 8-Inch SiC Substrates
As a third-generation semiconductor material, SiC boasts advantages like a wider bandgap, higher breakdown electric field, and exceptional thermal conductivity. Its stellar performance in high-temperature, high-pressure, and high-frequency applications positions it as a cornerstone in the realm of semiconductor materials.
Fueled by growing demand downstream, the SiC industry is in the midst of a high-speed expansion phase. TrendForce’s analysis forecasts the SiC power device market to reach US$2.28 billion in 2023, with an impressive annual growth rate of 41.4%. By 2026, this market is expected to expand further, reaching US$5.33 billion.
From an industry perspective, SiC devices’ cost structure encompasses substrates, epitaxy, tape out, and packaging processes, with substrates accounting for a substantial 45% of total production costs. To reduce per-device costs, the strategy revolves around enlarging SiC substrates and increasing the number of die per substrate. Notably, 8-inch SiC substrates offer distinct cost advantages over their 6-inch counterparts.
Data from Wolfspeed reveals that the transition from 6-inch to 8-inch substrates results in a modest increase in processing costs but yields an impressive 80-90% increase in the production of qualified chips. The greater thickness of 8-inch substrates helps maintain the shape during processing, reduces edge curvature, and minimizes defect density. Consequently, adopting 8-inch substrates can lead to a substantial 50% reduction in unit production costs.
According to TrendForce’s analysis, the SiC industry currently centers around 6-inch substrates, holding an impressive 80% market share, while 8-inch substrates account for only 1%. The transition to larger 8-inch wafers represents a crucial strategy to further reduce SiC device costs. As 8-inch wafers mature, their pricing is expected to be about 1.5 times that of 6-inch wafers, while producing approximately 1.8 times dies compare with 6-inch SiC wafers, greatly improving wafer utilization.
The industry is steadfastly progressing from 6-inch to 8-inch substrates, offering Chinese manufacturers a unique opportunity to surge ahead. TrendForce’s data suggests that the current market share of 8-inch products stands at less than 2%, with a projected growth to approximately 15% by 2026.
Seizing the Moment: Advancing 8-Inch SiC Substrates
Industry experts highlight the dual challenges of growing 8-inch SiC crystals: (1) the development of 8-inch seed crystals and (2) temperature field uniformity, gas-phase material distribution, transportation efficiency, and increased stress leading to crystal cracking.
As per industry insiders, 2023 is poised to become the “Year of 8-Inch SiC.” Throughout the year, global power semiconductor giants like Wolfspeed and STMicroelectronics have accelerated their efforts to develop 8-inch SiC. In China, significant breakthroughs have been achieved in SiC equipment, substrates, and epitaxy segments, with numerous industry leaders forming alliances with international power semiconductor giants.
TrendForce’s data from the Compound Semiconductor Market reveal that 10 enterprises and institutions in China are currently advancing the development of 8-inch silicon carbide (SiC) substrates. These include Semisic, JSG, SICC, Summit Crystal, Synlight, Institute of Physics Chinese Academy of Sciences, Shandong University, TankeBlue, KY Semiconductor, and IV-Semitec.
Here are the list of Chinese companies in the 8-inch SiC substrate field this year:
KY Semiconductor:
IV-Semitec:
Summit Crystal:
Hoshine Silicon:
Synlight:
TankeBlue:
JSG:
SanAn Optoelectronics:
SICC:
News
The Tokyo Motor Show, which recently opened in Japan, has garnered global attention from the automotive industry, particularly regarding EV technology, seen as the future of the automotive sector. Just like Toyota, a leader in the Japanese automotive industry, Nissan has showcased its ongoing development of Advanced Solid-State Battery (ASSB) technology at the event.
According to Nissan, the ASSB technology promises to provide double the energy density when compared to conventional liquid lithium-ion batteries, representing a significant milestone in battery innovation. Additionally, it is estimated that vehicles equipped with ASSB will experience a substantial reduction in charging times, taking only one-third of the current duration.
This development aims to address one of the fundamental challenges faced by EV users, making longer trips more convenient and practical while enhancing their overall confidence and enjoyment in electric vehicle ownership.
Kazuhiro Doi, Vice President of Nissan’s research division, believes that this technology could propel Nissan’s next generation of electric vehicles to a new level.
What’s particularly intriguing is that sports cars or supercars can utilize smaller and lighter battery packs, thereby improving handling, braking, and acceleration. Furthermore, according to Mydrivers, since ASSB batteries can operate normally in the range of room temperature to 100°C, they do not require a dedicated cooling system.
Currently, the ASSB technology is progressing according to Nissan’s previously announced plan. The first experimental production facility is still scheduled to commence operations next year, and the first mass-produced vehicle model utilizing ASSB technology is still expected to be launched in 2028.
(Photo credit: Nissan’s Facebook)