EP03 SiC technology and WolfSpeed: Why should you care?
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Summary:  In this episode we discuss Wolfspeed, a company that manufactures silicon carbide (SiC) semiconductors, has secured $750 million in funding from the US CHIPS Act and an additional $750 million from an investment group. SiC is a type of wide bandgap (WBG) semiconductor that offers significant advantages over traditional silicon semiconductors. These advantages include higher efficiency, better heat dissipation, and the ability to operate at higher voltages. This makes SiC ideal for use in power electronics applications, such as electric vehicles and AI chips. The funding will allow Wolfspeed to expand its silicon carbide manufacturing in the United States, potentially leading to further advances in these areas.  Questions to Consider while reading/listening:  1. What are the key benefits of silicon carbide (SiC) in semiconductor technology, particularly in relation to advanced AI chips and electric vehicles? 2. How does the US CHIPS and Science Act support the development and deployment of SiC-based semiconductor technologies, and what are the potential economic and geopolitical implications? 3. What are the challenges and opportunities facing the SiC semiconductor industry, and how is the industry evolving to meet these challenges?   Long Form: SiC Wolfspeed announces $750m in proposed funding from US CHIPS Act plus $750m from investment group What happened… (quoted from article source below) Wolfspeed has signed a non-binding preliminary memorandum of terms (PMT) for up to $750m in proposed direct funding under the US CHIPS and Science Act. Wolfspeed expects to receive $1bn of cash tax refunds from the advanced manufacturing tax credit under the CHIPS and Science Act (section 48D), giving the company, in total, access to up to $2.5bn of expected capital to support the expansion of silicon carbide manufacturing in the USA. End quote Why does this funding matter? Wolfspeed makes silicon carbide (SiC). SiC is a type of Wide Band Gap (WBG) technology that some say is the future of semiconductors.  Technically, SiC is a robust, hexagonal structure chemical compound offering wide band-gap semiconductor properties. What the f does that mean? Silicon carbide (SiC) is a compound semiconductor material made of silicon and carbon, crucial for AI and semiconductors due to its exceptional properties like high thermal conductivity, wide bandgap, and ability to operate under extreme temperatures, making it ideal for power electronics applications where high efficiency and heat dissipation are critical, especially in advanced AI chips requiring significant processing power. The wide bandage property allows SiC to operate at higher voltages with lower leakage current, resulting in improved energy efficiency. SiC’s WBG feature has a 3x improvement over the traditional silicon performance. As AI chips demand increasingly powerful processing capabilities, SiC semiconductors are being explored to enhance power efficiency and enable denser chip designs, leading to better performance in AI applications. A 10 to 15 percent greater range for electric vehicles can be achieved by SiC semiconductors because they convert energy more efficiently. As a result, car manufacturers can install smaller batteries in their electric vehicles. This is a win-win for the manufacturers and could provide a boost to the industry.  It sure seems very promising and more evidence that we (US taxpayers) are going all in on the “chip war”.

<<<<As a total geek aside, the process to make SiC is wild. SiC is a complex material to create because it requires a controlled environment that's about half the temperature of the sun using an Acheson Graphite electric resistance Furnace (AGF). AGF is a furnace that uses graphite rods and direct electric current to produce products through a process called graphitization. The furnace works by passing an electric current through graphite rods that are surrounded by a mixture of sand, carbon, and salt. The heat generated by the current transforms the mixture into a cylinder of silicon carbide (SiC) around the graphite electrode. It's also the second hardest material known to man. Very cool to this geek. The energy consumption to do this is not insignificant >>>> Sources:  https://www.semiconductor-today.com/news_items/2024/oct/wolfspeed-151024.shtml)   https://www.eag.com/blog/silicon-carbide-powerful-semiconductor/#:~:text=Silicon%20carbide%20is%20increasingly%20considered,and%20tolerate%20much%20more%20heat)   https://www.rohm.com/electronics-basics/sic/sic_what1#:~:text=SiC%20(silicon%20carbide)%20is%20a%20compound%20semiconductor,and%20n%2Dtype%20control%20required%20for%20device%20construction)   https://navitassemi.com/silicon-carbide-the-facts/#:~:text=Combining%20silicon%20(atomic%20number%2014,wide%20band%2Dgap%20semiconductor%20properties   https://link.springer.com/article/10.1007/s11027-023-10100-6#:~:text=The%20theoretical%20energy%20requirement%20per,furnace%20run%20(Guichelaar%201996))   Get full access to GeopoliticsUnplugged Substack at geopoliticsunplugged.substack.com/subscribe)