Overview
As the chip shortage eased and downstream demand softened, the semiconductors sector entered a cyclical downturn. Many companies adopted measures such as production cuts and reduced investment to navigate the downturn.
One subsegment that has remained resilient is IGBT. IGBT demand has continued to grow despite broader industry cyclicality.
IGBT Market Structure
By package type, IGBT products are classified into discrete IGBT devices, IPM modules, and IGBT modules. Discrete IGBT devices are mainly used in low-power home appliances and distributed photovoltaic inverters. IPM modules are applied in variable-frequency air conditioners and washers. IGBT modules are used in high-power variable-frequency drives, new energy vehicles, and centralized photovoltaic systems.
By operating voltage, IGBT is divided into low-voltage (below 600 V), medium-voltage (600 V–1200 V), and high-voltage (1700 V–6500 V). Low-voltage IGBT is commonly used in variable-frequency white goods and some new energy vehicle components. Medium-voltage IGBT is typically used in industrial control and new energy vehicles. High-voltage IGBT is used in rail transport and power grid applications.
With the rise of new energy vehicles, demand for power devices such as IGBT has increased significantly, creating tight supply conditions.
Market share analysis of major IGBT vendors shows that Europe accounts for around 35% of the IGBT chip market, with major players including Infineon, ON Semiconductor, and STMicroelectronics. The Asia-Pacific region holds about 30%–35%, led by Mitsubishi Electric, Fuji Electric, and Hitachi. North America accounts for approximately 15%, with ON Semiconductor and Texas Instruments among the main competitors.
Due to booming demand in renewables and storage, IGBT shortages have become common. Data from distributors indicate that international IGBT vendors such as Infineon, ON Semiconductor, and STMicroelectronics have full order books and stable pricing, with typical lead times exceeding 39 weeks and some tight parts reaching 52 weeks or more.
As a global leader, Infineon reportedly has backlog automotive orders worth EUR 29 billion. ON Semiconductor had about USD 5.7 billion in LTSA commitments and signed long-term agreements to support higher output.
This tight supply-demand balance has created opportunities for IGBT vendors in China.
According to statistics, from January to July 2023, 17 IGBT-related projects were started or signed, with cumulative investment exceeding RMB 15 billion, reflecting rapid expansion by Chinese companies in the IGBT field. The following sections summarize notable Chinese IGBT vendors and their recent progress.
Technical Status of Ten Chinese IGBT Vendors
Companies such as Silan Microelectronics, CR Micro, Sine New Energy, Huawei Microelectronics, BYD Semiconductor, and MacroMicro Technology have established mid- and low-voltage IGBT production capabilities. Only CRRC Times Electric and StarPower Semiconductor currently report high-voltage IGBT chip production capabilities.
Since its introduction, IGBT technology has evolved to reduce switching losses and enable thinner structures. Improvements in vertical structures, gate structures, and silicon processing have led to seven major technology generations. Current chips have advanced to a seventh-generation trench field-stop IGBT, although fourth-generation products remain the most cost-effective and widely used in many applications.
StarPower Semiconductor leads market share among IGBT suppliers in China, with strengths in IGBT modules for new energy vehicles and industrial control. Since 2013, the company has focused on vehicle IGBT module development, covering voltage ratings from 100 V to 3300 V and achieving early development of seventh-generation IGBT products.
CRRC Times Electric has a distinct IGBT product mix, with broad applications in urban rail, high-speed rail, and electric locomotives. Its IGBT modules rank second in the market after StarPower. CRRC Times Electric offers 750 V to 6500 V coverage, the widest voltage range among IGBT suppliers in China, and is the only company in China reporting coverage above 3300 V for rail and grid applications. The company has developed seventh-generation IGBT technology.
Silan Microelectronics focuses on discrete IGBT devices and IPM modules, with significant positions in white goods and industrial control. Its automotive-grade IGBT products have passed tests with some OEMs and begun small-volume deliveries. Silan has introduced products based on Infineon's seventh-generation architecture, which are under regulatory review and not yet in mass production.
Huawei Microelectronics is developing sixth-generation IGBT technology covering 360 V to 1350 V, targeting photovoltaic inverters, smart home, industrial control, and new energy vehicles. Sine New Energy has advanced IGBT products for photovoltaic and energy storage applications up to seventh generation and achieved mass production and sales.
Yangjie Technology mainly develops fourth-generation IGBT technology for industrial control and consumer electronics. BYD Semiconductor and MacroMicro Technology apply fifth-generation IGBT technology across automotive, industrial, new energy, consumer electronics, control, and photovoltaic applications.
CR Micro launched a fifth-generation high-performance IGBT series in 2022 for photovoltaic inverters, energy storage systems, charging stations, UPS, and onboard chargers.
Zhenhua Yongguang reported strong sixth-generation IGBT orders: as of May 31, 2023, user count for sixth-generation power modules rose 42.9% year on year and order value exceeded 100% year-on-year growth. In June 2023, the company developed a 1200 V/900 A seventh-generation IGBT power module with performance comparable to top-tier global products.
Key Applications: Automotive and Photovoltaics
Vehicle Integration and Adoption
StarPower has established partnerships with many domestic OEMs, including BYD, GAC, Changan, Chery, and BAIC. Half-year reports indicate vehicle-grade IGBT modules for motor control supported more than 600,000 EVs in the first half of the year, including over 400,000 A-class and above models. The company increased share in vehicle air conditioning, charging piles, and electronic power steering components. Mass deployment of 750 V vehicle-grade IGBT modules based on seventh-generation micro-trench FieldStop technology is underway.
CRRC Times Electric primarily supplies commercial vehicle platforms and has ramped deliveries to GAC, Dongfeng, XPeng, and Li Auto. The company indicated that vehicle-grade IGBT module shipments in 2022 covered approximately 700,000 vehicles; by Q3 2023 it had already matched last year’s total and targeted support for 1 million vehicles for the full year.
Silan's customers include Leapmotor, Inovance, SAIC, and Geely. MacroMicro is working on qualification projects with FAW, BAIC, and Great Wall. BYD Semiconductor primarily uses its IGBT devices for internal vehicle production.
Sine New Energy supplies automotive electronics customers such as BYD, Li Auto, NIO, and XPeng. Yangjie’s new energy vehicle customers include CATL, SERES, and BYD. CR Micro's IGBT products have entered OEMs including BYD and Great Wall.
Photovoltaic IGBT Market
Photovoltaic and energy storage is a major market for IGBT. StarPower, Sine New Energy, MacroMicro, and Yangjie have attracted attention in this segment.
In the PV storage sector, StarPower offers solutions based on 650 V/1200 V discrete IGBT and modules for residential, commercial, and ground-mounted power stations, and is a main supplier for residential and commercial grid-tied inverters and storage inverters. With strong demand from PV plants and large-scale storage, the company reports significant volume in PV and storage applications. Revenue from wind and solar storage is estimated at 15%–20%.
MacroMicro focuses on discrete devices in PV and has achieved rapid progress in modules through custom development with large customers. The company delivered large volumes of 80 A modules for PV inverters in H1 2022 and is developing 800 A/1200 V PV power modules. Its M5i micro-trench 650 V series has been validated and delivered in volume for PV single devices, and custom module specifications for UPS and PV sectors are progressing.
Sine New Energy is among the fastest-growing companies in the PV sector. Its IGBT devices have been widely supplied to over 80% of the top 10 domestic PV and storage companies, including GoodWe, Sungrow, Ginlong, and others, becoming the main domestic single-device supplier for several leading customers.
Yangjie Technology leveraged its diode business and customer relationships, including Huawei and Sungrow, to quickly enter PV and new energy supply chains. New energy revenue was 30% in Q3 of last year, mainly from PV SBDs, with IGBT also growing rapidly.
Capacity and Expansion
Vehicle-grade IGBT orders in China were largely locked in for the year. CRRC Times Electric noted strong demand and multi-year contracts from major customers, and stated urgent need for Phase 3 capacity to meet market demand.
Amid capacity shortages, many IGBT vendors have announced expansion plans.
In 2021, StarPower obtained approval for a private placement to raise RMB 3.5 billion for IGBT and SiC chip R&D and production. Planned capacity includes 6-inch IGBT capacity of 300,000 wafers per year and 6-inch SiC wafer capacity of 60,000 wafers per year. Specific production start dates were not disclosed.
CRRC Times Electric reported that Phase 1 and Phase 2 design capacity is 360,000 wafers, with monthly output approaching 40,000 wafers and an annual capacity target of 450,000 wafers. About three quarters of its IGBT products are medium- and low-voltage, and roughly 60% of those are automotive-grade. The company plans to raise utilization and yield to address capacity gaps and expects about 30% year-over-year capacity growth. New production lines are expected to start ramping in Q3 next year.
For the Phase 3 project, CRRC Times Electric started preparation in October 2022. Total investment is RMB 11.1 billion, with RMB 5.8 billion for the Yixing project and RMB 5.3 billion for the Zhuzhou project. Each site plans annual capacity of 360,000 8-inch IGBT wafers; Yixing will focus on new energy vehicles and Zhuzhou on power generation, industrial control, and appliances. The construction period is 24 months with expected production in June–July 2024.
Silan's Q3 report showed 5-inch and 6-inch lines operating at about 90% utilization and 8-inch lines at full load. Its LED lines are near full capacity. On 12-inch IGBT wafers, actual output was 15,000 wafers per month versus a design target of 25,000 wafers per month, but Silan plans for 12-inch production to reach full capacity by Q2–Q3 2024. Silan invested in a packaging project for automotive power modules and raised funds for 12-inch and SiC production lines with multi-year construction timelines targeting 2025 startup.
CR Micro is expanding 12-inch integrated circuit production in Shenzhen with a project valued at about RMB 22 billion and planned capacity of 40,000 wafers per month, targeting mass production by the end of 2024. The Chongqing 12-inch power wafer line and advanced testing and packaging base are ramping up.
BYD's IGBT project in Changsha, started in 2020, is designed for 250,000 8-inch wafers per year to support annual vehicle assembly of 500,000 units. BYD is also expanding capacity in Shandong and other regions. Facing tight internal demand, BYD has placed orders with other domestic automotive-grade IGBT producers including Silan, StarPower, CRRC Times Electric, and CR Micro.
MacroMicro received approval to issue convertible bonds in April to raise up to RMB 450 million for a first-phase project to produce automotive-grade power semiconductor discrete devices. The project is expected to yield annual capacity of 2.4 million automotive-grade power semiconductor devices when complete. Yangjie Technology's new energy business is expanding, and its MOSFET and IGBT volumes are increasing.
Revenue and Profitability
In Q3, Silan, CRRC Times Electric, StarPower, MacroMicro, and CR Micro reported continued revenue growth. Through the first three quarters, CRRC Times Electric, StarPower, and MacroMicro showed considerable year-over-year increases in both revenue and net profit.
From a business model perspective, larger firms such as CRRC Times Electric, CR Micro, and Silan adopt IDM models, while smaller firms such as StarPower, Sine New Energy, and MacroMicro primarily use fabless models.
In the current environment of strong demand, limited supply, and tight foundry capacity, IDM vendors have an advantage by reducing reliance on external wafer fabs and enabling more flexible production planning and capacity expansion.
StarPower is transitioning toward an IDM model and is constructing high-voltage IGBT and SiC chip production capacity to own its wafer lines.
IGBT is a segment with relatively healthy gross margins. Companies including CRRC Times Electric, Yangjie, StarPower, CR Micro, and Sine New Energy have reported quarterly gross margins above 30%. Tight supply and stronger pricing power have supported margin stability for these vendors.
Looking ahead, continued technology advancement and rising market demand suggest a broad and stable outlook for the IGBT industry. China-based IGBT manufacturers are expected to play an increasingly important role in the global market.
Industry observers noted that IGBT capacity expansion from 2021 to 2023 has been led by Chinese companies. Global chip shortages pushed major suppliers to full utilization, creating opportunities for Chinese vendors to gain downstream customers through competitive pricing, responsive service, and stable supply, and to scale production to increase market share.
Most Chinese IGBT suppliers focus on medium- and low-voltage markets; high-voltage IGBT efforts are currently concentrated at CRRC Times Electric and StarPower. With continuing growth in high-voltage DC transmission and electric traction applications, high-voltage, high-power IGBT devices are a target area for domestic development.
